Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Pennsylvania Real Estate Salesperson Exam involving disciplinary grounds and Pennsylvania Real Estate Commission. Which statement is the best answer? (Item 16)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Pennsylvania exam practice.
Correct Answer
D. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D because disciplinary grounds requires candidates to recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks. 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: disciplinary grounds