Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Utah Real Estate Sales Agent Exam involving exclusive right to sell and Utah Division of Real Estate. Which statement is the best answer? (Item 58)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Utah exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Utah exam practice.
Explanation
The correct answer is B because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: Contracts, Finance, and Transfer
- Objective: exclusive right to sell