Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Virginia Real Estate Salesperson Exam involving disciplinary grounds and Virginia Real Estate Board. Which statement is most accurate for exam purposes? (Item 70)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Virginia 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 fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Virginia exam practice.
Explanation
The correct answer is B because disciplinary grounds requires candidates to recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks. The Virginia 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: disciplinary grounds