Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the North Carolina Real Estate Broker Exam involving advertising compliance and material facts and due diligence practice. What should the licensee understand? (Item 46)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Avoid misleading ads and include required brokerage or license identification in a way that fits North Carolina exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Avoid misleading ads and include required brokerage or license identification in a way that fits North Carolina exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: advertising compliance