Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Washington Real Estate Broker Exam involving exclusive right to sell and agency law pamphlet concepts. Which response best applies the rule? (Item 184)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Washington exam practice.
Correct Answer
D. Recognize a listing that generally earns commission if the property sells during the listing term in a way that fits Washington exam practice.
Explanation
The correct answer is D because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: Contracts, Finance, and Transfer
- Objective: exclusive right to sell