Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the North Carolina Real Estate Broker Exam involving advertising compliance and North Carolina Real Estate Commission. Which statement is the best answer? (Item 64)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. Avoid misleading ads and include required brokerage or license identification in a way that fits North Carolina exam practice.
Correct Answer
D. Avoid misleading ads and include required brokerage or license identification in a way that fits North Carolina exam practice.
Explanation
The correct answer is D because advertising compliance requires candidates to avoid misleading ads and include required brokerage or license identification. The North Carolina reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: hard
- Domain: Agency and License Law
- Objective: advertising compliance