License Law and Agency Practice Question
Question
A transaction coordinator flags a compliance question in a Texas real estate transaction involving commissions. Which response best applies the rule? (Item 21)
Answer choices
- A. Recognize compensation is paid through the sponsoring broker.
- B. The broker may mix client funds with business funds if the amount is small and later reconciled.
- C. The issue can be ignored if both parties want the transaction to close quickly.
- D. The rule applies only to commercial property and never to residential property.
Correct Answer
A. Recognize compensation is paid through the sponsoring broker.
Explanation
The correct answer is A because commissions requires candidates to recognize compensation is paid through the sponsoring broker. 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: commissions