Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Pennsylvania Real Estate Salesperson Exam involving commission payment and Pennsylvania Real Estate Commission. Which statement is the best answer? (Item 68)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Recognize that affiliated licensees are usually paid through their broker in a way that fits Pennsylvania exam practice.
Correct Answer
D. Recognize that affiliated licensees are usually paid through their broker in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D because commission payment requires candidates to recognize that affiliated licensees are usually paid through their broker. 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: hard
- Domain: Agency and License Law
- Objective: commission payment