License Law and DRE Regulation Practice Question
Question
A license applicant is studying a California practice scenario involving trust fund deposits. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 53)
Answer choices
- A. Recognize prompt handling of client funds and broker trust account duties.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. It can be ignored if the transaction is expected to close quickly.
Correct Answer
A. Recognize prompt handling of client funds and broker trust account duties.
Explanation
The correct answer is A because trust fund deposits requires candidates to recognize prompt handling of client funds and broker trust account duties. 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: License Law and DRE Regulation
- Objective: trust fund deposits