License Law and Agency Practice Question
Question
A property owner asks how a rule affects marketability in a Texas real estate transaction involving intermediary. Which response best applies the rule? (Item 65)
Answer choices
- A. Recognize Texas intermediary brokerage concepts and consent requirements.
- B. The rule applies only to commercial property and never to residential property.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. The issue can be ignored if both parties want the transaction to close quickly.
Correct Answer
A. Recognize Texas intermediary brokerage concepts and consent requirements.
Explanation
The correct answer is A because intermediary requires candidates to recognize Texas intermediary brokerage concepts and consent requirements. 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: easy
- Domain: License Law and Agency
- Objective: intermediary