License Law and Agency Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a New York real estate transaction involving broker supervision. Which statement is most accurate for exam purposes? (Item 242)
Answer choices
- A. The rule applies only to commercial property and never to residential property.
- B. Identify the broker responsibility for affiliated salesperson activity and transaction records.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. The issue can be ignored if both parties want the transaction to close quickly.
Correct Answer
B. Identify the broker responsibility for affiliated salesperson activity and transaction records.
Explanation
The correct answer is B because broker supervision requires candidates to identify the broker responsibility for affiliated salesperson activity and transaction records. 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: broker supervision