Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the South Carolina Real Estate Salesperson Exam involving disciplinary grounds and agency disclosure and broker supervision. Which answer best reduces risk? (Item 34)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits South Carolina exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits South Carolina exam practice.
Explanation
The correct answer is B because disciplinary grounds requires candidates to recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks. The South Carolina 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: disciplinary grounds