Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Arizona Real Estate Salesperson Exam involving accounting and Arizona Department of Real Estate. Which statement is most accurate for exam purposes? (Item 115)
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. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Arizona exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Arizona exam practice.
Explanation
The correct answer is C because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. 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: medium
- Domain: Agency and License Law
- Objective: accounting