Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Massachusetts Real Estate Salesperson Exam involving accounting and broker-salesperson supervision. Which response best applies the rule? (Item 187)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Massachusetts exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. 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: medium
- Domain: Agency and License Law
- Objective: accounting