Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the North Carolina Real Estate Broker Exam involving accounting and material facts and due diligence practice. What should the licensee understand? (Item 43)
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. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits North Carolina exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. 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: accounting