Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Pennsylvania Real Estate Salesperson Exam involving commission payment and consumer notice concepts. Which answer best reduces risk? (Item 86)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize that affiliated licensees are usually paid through their broker in a way that fits Pennsylvania exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Recognize that affiliated licensees are usually paid through their broker in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: commission payment