Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving license-required activity and material facts and due diligence practice. Which response best applies the rule? (Item 37)
Answer choices
- A. Identify acts requiring a license when performed for compensation in a way that fits North Carolina exam practice.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. A verbal understanding always replaces a written real estate requirement.
- D. The safest practice is to avoid written documentation so fewer questions are raised later.
Correct Answer
A. Identify acts requiring a license when performed for compensation in a way that fits North Carolina exam practice.
Explanation
The correct answer is A 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: easy
- Domain: Agency and License Law
- Objective: license-required activity