Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Washington Real Estate Broker Exam involving advertising compliance and seller disclosure and environmental awareness. Which response best applies the rule? (Item 100)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Avoid misleading ads and include required brokerage or license identification in a way that fits Washington exam practice.
Correct Answer
D. Avoid misleading ads and include required brokerage or license identification in a way that fits Washington exam practice.
Explanation
The correct answer is D because advertising compliance requires candidates to avoid misleading ads and include required brokerage or license identification. The Washington 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: advertising compliance