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 commission payment and sales agent brokerage affiliation. Which answer best reduces risk? (Item 86)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Recognize that affiliated licensees are usually paid through their broker in a way that fits Utah exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Recognize that affiliated licensees are usually paid through their broker in a way that fits Utah exam practice.
Explanation
The correct answer is B because commission payment requires candidates to recognize that affiliated licensees are usually paid through their broker. 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: medium
- Domain: Agency and License Law
- Objective: commission payment