License Law and Agency Practice Question
Question
A supervising broker is correcting a salesperson’s misunderstanding in a Texas real estate transaction involving TREC authority. What should the licensee understand? (Item 289)
Answer choices
- A. Recognize the Texas Real Estate Commission’s licensing and discipline role.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. The broker may mix client funds with business funds if the amount is small and later reconciled.
Correct Answer
A. Recognize the Texas Real Estate Commission’s licensing and discipline role.
Explanation
The correct answer is A because TREC authority requires candidates to recognize the Texas Real Estate Commission’s licensing and discipline role. 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: TREC authority