License Law and Agency Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a Nevada real estate transaction involving broker supervision. What should the licensee understand? (Item 50)
Answer choices
- A. The salesperson may handle the matter independently without broker involvement when compensation is expected.
- B. Identify broker duties over affiliated licensees and transaction activities.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only if the buyer uses lender financing.
Correct Answer
B. Identify broker duties over affiliated licensees and transaction activities.
Explanation
The correct answer is B because broker supervision requires candidates to identify broker duties over affiliated licensees and transaction activities. 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: broker supervision