Final answer:
When legal problems arise in a real estate transaction, the principal broker should consult with an attorney and consider referring the matter to the state real estate commission. Therefore, the correct answer is (D) All of the above.
Step-by-step explanation:
In a real estate transaction, if legal problems arise, the principal broker should take certain steps to handle the situation. Option (A) states that the principal broker should consult with an attorney. This is a wise step to take as an attorney can provide legal advice and guidance on how to navigate the legal issues and protect the broker's interests.
Option (B) suggests that the principal broker should attempt to resolve the problem directly with the other party. While this can be a possible course of action, it may not always be feasible or effective, especially when the legal issues require professional legal expertise.
Option (C) states that the principal broker should refer the matter to the state real estate commission. This could be another important step to take as the real estate commission can provide guidance, enforce regulations, and even mediate disputes between parties.
Given these considerations, the best course of action for a principal broker when legal problems arise in a real estate transaction would be to consult with an attorney (option A), as they can provide specific legal advice tailored to the situation, and to refer the matter to the state real estate commission (option C), if necessary. Therefore, the correct answer is (D) All of the above.