License Law and Agency Practice Question
Question
A transaction coordinator flags a compliance question in a Texas real estate transaction involving advertising. What should the licensee understand? (Item 187)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only if the buyer uses lender financing.
- C. Avoid misleading ads and include required broker/license holder identification concepts.
- D. The salesperson may handle the matter independently without broker involvement when compensation is expected.
Correct Answer
C. Avoid misleading ads and include required broker/license holder identification concepts.
Explanation
The correct answer is C because advertising requires candidates to avoid misleading ads and include required broker/license holder identification concepts. 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: advertising