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 broker supervision and South Carolina Real Estate Commission. Which answer best reduces risk? (Item 56)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Recognize responsible broker oversight of affiliated licensees in a way that fits South Carolina exam practice.
Correct Answer
D. Recognize responsible broker oversight of affiliated licensees in a way that fits South Carolina exam practice.
Explanation
The correct answer is D because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. 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: hard
- Domain: Agency and License Law
- Objective: broker supervision