Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Arizona Real Estate Salesperson Exam involving trust money and desert-region water and environmental awareness. Which response best applies the rule? (Item 101)
Answer choices
- A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Arizona exam practice.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- 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
A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Arizona exam practice.
Explanation
The correct answer is A because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. The Arizona 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: easy
- Domain: Agency and License Law
- Objective: trust money