License Law and Agency Practice Question
Question
A license applicant is comparing two similar real estate concepts in a New York real estate transaction involving discipline. Which statement is most accurate for exam purposes? (Item 190)
Answer choices
- A. The issue can be ignored if both parties want the transaction to close quickly.
- B. Recognize misrepresentation, fraud, commingling, and unlicensed activity as discipline risks.
- C. The rule applies only to commercial property and never to residential property.
- D. The broker may mix client funds with business funds if the amount is small and later reconciled.
Correct Answer
B. Recognize misrepresentation, fraud, commingling, and unlicensed activity as discipline risks.
Explanation
The correct answer is B because discipline requires candidates to recognize misrepresentation, fraud, commingling, and unlicensed activity as discipline risks. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.
Question details
- Difficulty: medium
- Domain: License Law and Agency
- Objective: discipline