Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Michigan Real Estate Salesperson Exam involving consumer complaints and agency and trust-money compliance. Which statement is the best answer? (Item 162)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize the role of the state regulator in complaint handling and enforcement in a way that fits Michigan exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Recognize the role of the state regulator in complaint handling and enforcement in a way that fits Michigan exam practice.
Explanation
The correct answer is B because consumer complaints requires candidates to recognize the role of the state regulator in complaint handling and enforcement. 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: medium
- Domain: Agency and License Law
- Objective: consumer complaints