Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Washington Real Estate Broker Exam involving commission payment and seller disclosure and environmental awareness. What should the licensee understand? (Item 50)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Recognize that affiliated licensees are usually paid through their broker in a way that fits Washington exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Recognize that affiliated licensees are usually paid through their broker in a way that fits Washington 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 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: medium
- Domain: Agency and License Law
- Objective: commission payment