Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Washington Real Estate Broker Exam involving advertising compliance and Washington broker licensing structure. Which answer best reduces risk? (Item 172)
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