Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the North Carolina Real Estate Broker Exam involving broker supervision and material facts and due diligence practice. Which statement is most accurate for exam purposes? (Item 92)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Recognize responsible broker oversight of affiliated licensees in a way that fits North Carolina exam practice.
Correct Answer
D. Recognize responsible broker oversight of affiliated licensees in a way that fits North Carolina exam practice.
Explanation
The correct answer is D because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. 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: broker supervision