Agency and License Law Practice Question
Question
A seller is preparing to list a home for the Pennsylvania Real Estate Salesperson Exam involving accounting and state agreement and disclosure practice. Which statement is the best answer? (Item 151)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Pennsylvania exam practice.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Pennsylvania 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 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: accounting