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 recordkeeping. Which statement is most accurate for exam purposes? (Item 347)
Answer choices
- A. A verbal understanding always replaces any written requirement in a real estate transaction.
- B. The licensee should avoid documenting the issue to reduce the chance of later questions.
- C. Understand broker retention and documentation responsibilities for transaction files.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
Correct Answer
C. Understand broker retention and documentation responsibilities for transaction files.
Explanation
The correct answer is C because recordkeeping requires candidates to understand broker retention and documentation responsibilities for transaction files. 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: recordkeeping