Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Illinois Real Estate Broker Exam involving trust money and agency disclosure practice. What should the licensee understand? (Item 137)
Answer choices
- A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Illinois exam practice.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Illinois exam practice.
Explanation
The correct answer is A because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. The Illinois 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: easy
- Domain: Agency and License Law
- Objective: trust money