Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Pennsylvania Real Estate Salesperson Exam involving broker supervision and consumer notice concepts. Which response best applies the rule? (Item 74)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize responsible broker oversight of affiliated licensees in a way that fits Pennsylvania exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Recognize responsible broker oversight of affiliated licensees in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. The Pennsylvania 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: broker supervision