License Law and Agency Practice Question
Question
A broker reviews a transaction file with a new salesperson in a Nevada real estate transaction involving duties owed. What should the licensee understand? (Item 172)
Answer choices
- A. The rule applies only to commercial property and never to residential property.
- B. The broker may mix client funds with business funds if the amount is small and later reconciled.
- C. The issue can be ignored if both parties want the transaction to close quickly.
- D. Apply honesty, disclosure, reasonable skill, accounting, and client loyalty concepts.
Correct Answer
D. Apply honesty, disclosure, reasonable skill, accounting, and client loyalty concepts.
Explanation
The correct answer is D because duties owed requires candidates to apply honesty, disclosure, reasonable skill, accounting, and client loyalty concepts. 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: hard
- Domain: License Law and Agency
- Objective: duties owed