Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Michigan Real Estate Salesperson Exam involving broker supervision and seller disclosure practice. Which statement is most accurate for exam purposes? (Item 182)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize responsible broker oversight of affiliated licensees in a way that fits Michigan exam practice.
- 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
B. Recognize responsible broker oversight of affiliated licensees in a way that fits Michigan exam practice.
Explanation
The correct answer is B because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. 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: broker supervision