Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Arizona Real Estate Salesperson Exam involving commingling and Arizona Department of Real Estate. Which statement is most accurate for exam purposes? (Item 174)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Identify improper mixing of client funds and broker funds in a way that fits Arizona exam practice.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
B. Identify improper mixing of client funds and broker funds in a way that fits Arizona exam practice.
Explanation
The correct answer is B because commingling requires candidates to identify improper mixing of client funds and broker funds. 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: commingling