Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Indiana Real Estate Broker Exam involving trust money and broker affiliation and supervision. Which statement is most accurate for exam purposes? (Item 29)
Answer choices
- A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Indiana exam practice.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Indiana 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 Indiana 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