Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Utah Real Estate Sales Agent Exam involving broker supervision and Utah Division of Real Estate. Which answer best reduces risk? (Item 56)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Recognize responsible broker oversight of affiliated licensees in a way that fits Utah exam practice.
Correct Answer
D. Recognize responsible broker oversight of affiliated licensees in a way that fits Utah exam practice.
Explanation
The correct answer is D because broker supervision requires candidates to recognize responsible broker oversight of affiliated licensees. The Utah reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: hard
- Domain: Agency and License Law
- Objective: broker supervision