Fair Housing and Practice Practice Question
Question
A property manager is preparing a written response involving trust fund handling. What should a California real estate licensee understand? (Item 71)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. It requires the licensee to favor the other party over the licensee’s own client.
- C. Identify timely handling and separation of client funds.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
C. Identify timely handling and separation of client funds.
Explanation
The correct answer is C because trust fund handling requires candidates to identify timely handling and separation of client funds. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: easy
- Domain: Fair Housing and Practice
- Objective: trust fund handling