License Law and DRE Regulation Practice Question
Question
A listing agent notices a potential compliance issue involving commingling. What should a California real estate licensee understand? (Item 84)
Answer choices
- A. It prevents any later disclosure, even when new facts become known.
- 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. Identify improper mixing of client funds with broker personal or business funds.
Correct Answer
D. Identify improper mixing of client funds with broker personal or business funds.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds with broker personal or business 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: medium
- Domain: License Law and DRE Regulation
- Objective: commingling