License Law and Agency Practice Question
Question
An agent notices a possible issue before a contract is signed in a Nevada real estate transaction involving broker supervision. Which answer best reduces transaction risk? (Item 146)
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