Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the New Jersey Real Estate Salesperson Exam involving broker supervision and attorney review awareness. Which response best applies the rule? (Item 74)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Recognize responsible broker oversight of affiliated licensees in a way that fits New Jersey exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Recognize responsible broker oversight of affiliated licensees in a way that fits New Jersey exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: broker supervision