License Law and DRE Regulation Practice Question
Question
An escrow officer requests clarification from the broker involving record retention. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 101)
Answer choices
- A. Recognize that brokers must keep transaction and trust-fund records for required periods.
- B. It requires the licensee to favor the other party over the licensee’s own client.
- 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
A. Recognize that brokers must keep transaction and trust-fund records for required periods.
Explanation
The correct answer is A 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: easy
- Domain: License Law and DRE Regulation
- Objective: record retention