Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the North Carolina Real Estate Broker Exam involving record retention and provisional broker supervision. Which answer best reduces risk? (Item 33)
Answer choices
- A. Understand transaction records must be maintained for required periods in a way that fits North Carolina exam practice.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
A. Understand transaction records must be maintained for required periods in a way that fits North Carolina exam practice.
Explanation
The correct answer is A 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: easy
- Domain: Agency and License Law
- Objective: record retention