Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Pennsylvania Real Estate Salesperson Exam involving consumer complaints and Pennsylvania Real Estate Commission. Which statement is most accurate for exam purposes? (Item 126)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Recognize the role of the state regulator in complaint handling and enforcement in a way that fits Pennsylvania exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Recognize the role of the state regulator in complaint handling and enforcement in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because consumer complaints requires candidates to recognize the role of the state regulator in complaint handling and enforcement. 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: consumer complaints