Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Pennsylvania Real Estate Salesperson Exam involving license-required activity and state agreement and disclosure practice. Which answer best reduces risk? (Item 199)
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