Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Massachusetts Real Estate Salesperson Exam involving record retention and Massachusetts Board of Registration. Which statement is most accurate for exam purposes? (Item 69)
Answer choices
- A. Understand transaction records must be maintained for required periods in a way that fits Massachusetts exam practice.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
A. Understand transaction records must be maintained for required periods in a way that fits Massachusetts exam practice.
Explanation
The correct answer is A because record retention requires candidates to understand transaction records must be maintained for required periods. The Massachusetts reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: easy
- Domain: Agency and License Law
- Objective: record retention