Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Michigan Real Estate Salesperson Exam involving record retention and seller disclosure practice. Which answer best reduces risk? (Item 33)
Answer choices
- A. Understand transaction records must be maintained for required periods in a way that fits Michigan exam practice.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
A. Understand transaction records must be maintained for required periods in a way that fits Michigan exam practice.
Explanation
The correct answer is A because record retention requires candidates to understand transaction records must be maintained for required periods. The Michigan 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