License Law and Agency Practice Question
Question
A buyer and seller disagree about a closing issue in a New York real estate transaction involving professional conduct. What should the licensee understand? (Item 48)
Answer choices
- A. The salesperson may handle the matter independently without broker involvement when compensation is expected.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only if the buyer uses lender financing.
- D. Avoid conflicts, undisclosed self-interest, and conduct that misleads the public.
Correct Answer
D. Avoid conflicts, undisclosed self-interest, and conduct that misleads the public.
Explanation
The correct answer is D because professional conduct requires candidates to avoid conflicts, undisclosed self-interest, and conduct that misleads the public. 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: hard
- Domain: License Law and Agency
- Objective: professional conduct