License Law and DRE Regulation Practice Question
Question
A broker is supervising a transaction file involving commingling. What should a California real estate licensee understand? (Item 69)
Answer choices
- A. Identify improper mixing of client funds with broker personal or business funds.
- B. It is valid only when the buyer pays cash and no lender is involved.
- C. It prevents any later disclosure, even when new facts become known.
- D. It applies only to commercial property and never to residential transactions.
Correct Answer
A. Identify improper mixing of client funds with broker personal or business funds.
Explanation
The correct answer is A 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: hard
- Domain: License Law and DRE Regulation
- Objective: commingling