Practice, Math, and Disclosures Practice Question
Question
A client wants to know what should be documented in writing in a Florida real estate transaction involving professional conduct. Which statement is most accurate for exam purposes? (Item 240)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. Avoid misleading statements, unauthorized legal advice, and conflicts of interest.
Correct Answer
D. Avoid misleading statements, unauthorized legal advice, and conflicts of interest.
Explanation
The correct answer is D because professional conduct requires candidates to avoid misleading statements, unauthorized legal advice, and conflicts of interest. 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: Practice, Math, and Disclosures
- Objective: professional conduct