License Law and Agency Practice Question
Question
A buyer and seller disagree about a closing issue in a Texas real estate transaction involving appointed associates. What should the licensee understand? (Item 198)
Answer choices
- A. The licensee should avoid documenting the issue to reduce the chance of later questions.
- B. Understand appointments within an intermediary transaction at a high exam level.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- D. A verbal understanding always replaces any written requirement in a real estate transaction.
Correct Answer
B. Understand appointments within an intermediary transaction at a high exam level.
Explanation
The correct answer is B because appointed associates requires candidates to understand appointments within an intermediary transaction at a high exam level. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.
Question details
- Difficulty: medium
- Domain: License Law and Agency
- Objective: appointed associates