Agency and License Law Practice Question
Question
A seller is preparing to list a home for the Indiana Real Estate Broker Exam involving commingling and Indiana Real Estate Commission. Which response best applies the rule? (Item 66)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Identify improper mixing of client funds and broker funds in a way that fits Indiana exam practice.
- 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
B. Identify improper mixing of client funds and broker funds in a way that fits Indiana exam practice.
Explanation
The correct answer is B because commingling requires candidates to identify improper mixing of client funds and broker funds. 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: medium
- Domain: Agency and License Law
- Objective: commingling