License Law and Agency Practice Question
Question
A broker reviews a transaction file with a new salesperson in a Texas real estate transaction involving license renewal. What should the licensee understand? (Item 238)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- B. Identify education and renewal compliance concepts.
- C. A verbal understanding always replaces any written requirement in a real estate transaction.
- D. The licensee should avoid documenting the issue to reduce the chance of later questions.
Correct Answer
B. Identify education and renewal compliance concepts.
Explanation
The correct answer is B because license renewal requires candidates to identify education and renewal compliance 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: license renewal