Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the North Carolina Real Estate Broker Exam involving license-required activity and North Carolina Real Estate Commission. Which statement is most accurate for exam purposes? (Item 55)
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. Identify acts requiring a license when performed for compensation in a way that fits North Carolina exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Identify acts requiring a license when performed for compensation in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because license-required activity requires candidates to identify acts requiring a license when performed for compensation. 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: license-required activity