Leasing and Property Management Practice Question
Question
A listing agent notices a potential compliance issue involving security deposits. Which statement best describes security deposits? (Item 9)
Answer choices
- A. Recognize California residential deposit handling and accounting concepts.
- B. It applies only to commercial property and never to residential transactions.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- D. It is valid only when the buyer pays cash and no lender is involved.
Correct Answer
A. Recognize California residential deposit handling and accounting concepts.
Explanation
The correct answer is A because security deposits requires candidates to recognize California residential deposit handling and accounting concepts. 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: hard
- Domain: Leasing and Property Management
- Objective: security deposits