License Law and DRE Regulation Practice Question
Question
An investor is comparing two properties involving trust fund deposits. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 98)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. Recognize prompt handling of client funds and broker trust account duties.
- C. It is primarily a tax rule with no effect on brokerage practice.
- D. It removes the need for written disclosure if the licensee believes the client already knows.
Correct Answer
B. Recognize prompt handling of client funds and broker trust account duties.
Explanation
The correct answer is B 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: medium
- Domain: License Law and DRE Regulation
- Objective: trust fund deposits