License Law and Agency Practice Question
Question
A license applicant is comparing two similar real estate concepts in a Texas real estate transaction involving broker sponsorship. Which answer best reduces transaction risk? (Item 266)
Answer choices
- A. A verbal understanding always replaces any written requirement in a real estate transaction.
- B. Identify that a sales agent must be sponsored by a broker to perform licensed activity.
- C. The licensee should avoid documenting the issue to reduce the chance of later questions.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
Correct Answer
B. Identify that a sales agent must be sponsored by a broker to perform licensed activity.
Explanation
The correct answer is B because broker sponsorship requires candidates to identify that a sales agent must be sponsored by a broker to perform licensed activity. 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: broker sponsorship