Fair Housing, Practice, and Disclosures Practice Question
Question
A supervising broker is reviewing a transaction file for the Michigan Real Estate Salesperson Exam involving unauthorized legal advice and Michigan occupational licensing regulation. Which statement is the best answer? (Item 16)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. A verbal understanding always replaces a written real estate requirement.
- C. The safest practice is to avoid written documentation so fewer questions are raised later.
- D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Michigan exam practice.
Correct Answer
D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Michigan exam practice.
Explanation
The correct answer is D because unauthorized legal advice requires candidates to avoid drafting legal rights or giving legal opinions beyond license authority. 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: Fair Housing, Practice, and Disclosures
- Objective: unauthorized legal advice