License Law and Brokerage Relationships Practice Question
Question
An agent notices a possible issue before a contract is signed in a Florida real estate transaction involving escrow deposits. Which answer best reduces transaction risk? (Item 164)
Answer choices
- A. The issue can be ignored if both parties want the transaction to close quickly.
- B. The rule applies only to commercial property and never to residential property.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. Recognize broker duties for timely escrow handling and dispute procedures.
Correct Answer
D. Recognize broker duties for timely escrow handling and dispute procedures.
Explanation
The correct answer is D because escrow deposits requires candidates to recognize broker duties for timely escrow handling and dispute procedures. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.
Question details
- Difficulty: hard
- Domain: License Law and Brokerage Relationships
- Objective: escrow deposits