Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Pennsylvania Real Estate Salesperson Exam involving exclusive right to sell and state agreement and disclosure practice. Which statement is most accurate for exam purposes? (Item 202)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Recognize a listing that generally earns commission if the property sells during the listing term 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 a listing that generally earns commission if the property sells during the listing term in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: Contracts, Finance, and Transfer
- Objective: exclusive right to sell