Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Georgia Real Estate Salesperson Exam involving conversion and brokerage relationship disclosure. Which statement is the best answer? (Item 31)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. Recognize unauthorized use of client money as serious misconduct in a way that fits Georgia exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Recognize unauthorized use of client money as serious misconduct in a way that fits Georgia exam practice.
Explanation
The correct answer is C because conversion requires candidates to recognize unauthorized use of client money as serious misconduct. The Georgia reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Agency and License Law
- Objective: conversion