Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the New Jersey Real Estate Salesperson Exam involving broker supervision and attorney review awareness. What should the licensee understand? (Item 20)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. Recognize responsible broker oversight of affiliated licensees in a way that fits New Jersey exam practice.
Correct Answer
D. Recognize responsible broker oversight of affiliated licensees in a way that fits New Jersey exam practice.
Explanation
The correct answer is D because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. The New Jersey 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: Agency and License Law
- Objective: broker supervision