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 compensation rules. Which response best applies the rule? (Item 199)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- B. A verbal understanding always replaces any written requirement in a real estate transaction.
- C. Identify that salesperson compensation is handled through the sponsoring broker.
- D. The licensee should avoid documenting the issue to reduce the chance of later questions.
Correct Answer
C. Identify that salesperson compensation is handled through the sponsoring broker.
Explanation
The correct answer is C because compensation rules requires candidates to identify that salesperson compensation is handled through the sponsoring broker. 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: compensation rules