Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving record retention and provisional broker supervision. What should the licensee understand? (Item 87)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. Understand transaction records must be maintained for required periods in a way that fits North Carolina exam practice.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Understand transaction records must be maintained for required periods in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because record retention requires candidates to understand transaction records must be maintained for required periods. 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: record retention