Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the South Carolina Real Estate Salesperson Exam involving commission payment and agency disclosure and broker supervision. Which answer best reduces risk? (Item 86)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Recognize that affiliated licensees are usually paid through their broker in a way that fits South Carolina exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Recognize that affiliated licensees are usually paid through their broker in a way that fits South Carolina 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 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: commission payment