License Law and Agency Practice Question
Question
A supervising broker is correcting a salesperson’s misunderstanding in a Texas real estate transaction involving IABS notice. Which answer best reduces transaction risk? (Item 123)
Answer choices
- A. The salesperson may handle the matter independently without broker involvement when compensation is expected.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Recognize the Information About Brokerage Services disclosure concept.
- D. The requirement matters only if the buyer uses lender financing.
Correct Answer
C. Recognize the Information About Brokerage Services disclosure concept.
Explanation
The correct answer is C because IABS notice requires candidates to recognize the Information About Brokerage Services disclosure concept. 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: IABS notice