Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Michigan Real Estate Salesperson Exam involving advertising compliance and agency and trust-money compliance. Which statement is the best answer? (Item 154)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Avoid misleading ads and include required brokerage or license identification in a way that fits Michigan exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Avoid misleading ads and include required brokerage or license identification in a way that fits Michigan exam practice.
Explanation
The correct answer is B because advertising compliance requires candidates to avoid misleading ads and include required brokerage or license identification. 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: advertising compliance