License Law and DRE Regulation Practice Question
Question
A seller is reviewing documents before accepting an offer involving record retention. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 86)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. Recognize that brokers must keep transaction and trust-fund records for required periods.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
B. Recognize that brokers must keep transaction and trust-fund records for required periods.
Explanation
The correct answer is B because record retention requires candidates to recognize that brokers must keep transaction and trust-fund records for required periods. 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: record retention