License Law and Agency Practice Question
Question
A property owner asks how a rule affects marketability in a New York real estate transaction involving license requirements. Which statement is most accurate for exam purposes? (Item 25)
Answer choices
- A. Recognize activities requiring a New York real estate license when performed for compensation.
- B. Escrow automatically assumes all brokerage disclosure and agency duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the legal remedy requested.
Correct Answer
A. Recognize activities requiring a New York real estate license when performed for compensation.
Explanation
The correct answer is A because license requirements requires candidates to recognize activities requiring a New York real estate license when performed for compensation. 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: easy
- Domain: License Law and Agency
- Objective: license requirements