Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Pennsylvania Real Estate Salesperson Exam involving license-required activity and Pennsylvania Real Estate Commission. What should the licensee understand? (Item 163)
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. Identify acts requiring a license when performed for compensation 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. Identify acts requiring a license when performed for compensation in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is C because license-required activity requires candidates to identify acts requiring a license when performed for compensation. 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: license-required activity