Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Michigan Real Estate Salesperson Exam involving exclusive right to sell and Michigan occupational licensing regulation. Which statement is most accurate for exam purposes? (Item 112)
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. The requirement matters only when the buyer obtains institutional financing.
- D. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Michigan exam practice.
Correct Answer
D. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Michigan exam practice.
Explanation
The correct answer is D because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: exclusive right to sell