License Law and Agency Practice Question
Question
A property owner asks how a rule affects marketability in a Nevada real estate transaction involving discipline. What should the licensee understand? (Item 83)
Answer choices
- A. The party who complains first automatically receives the legal remedy requested.
- B. Escrow automatically assumes all brokerage disclosure and agency duties.
- C. Recognize misrepresentation, fraud, trust fund violations, and unlicensed activity as enforcement risks.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Recognize misrepresentation, fraud, trust fund violations, and unlicensed activity as enforcement risks.
Explanation
The correct answer is C because discipline requires candidates to recognize misrepresentation, fraud, trust fund violations, and unlicensed activity as enforcement risks. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Nevada exam practice.
Question details
- Difficulty: medium
- Domain: License Law and Agency
- Objective: discipline