Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the South Carolina Real Estate Salesperson Exam involving exclusive right to sell and South Carolina Real Estate Commission. Which response best applies the rule? (Item 4)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits South Carolina exam practice.
Correct Answer
D. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits South Carolina exam practice.
Explanation
The correct answer is D because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: Contracts, Finance, and Transfer
- Objective: exclusive right to sell