Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving conversion and North Carolina Real Estate Commission. Which response best applies the rule? (Item 67)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Recognize unauthorized use of client money as serious misconduct in a way that fits North Carolina exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Recognize unauthorized use of client money as serious misconduct in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because conversion requires candidates to recognize unauthorized use of client money as serious misconduct. 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: medium
- Domain: Agency and License Law
- Objective: conversion