Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Indiana Real Estate Broker Exam involving accounting and state agency and disclosure practice. Which response best applies the rule? (Item 97)
Answer choices
- A. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Indiana exam practice.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
A. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Indiana exam practice.
Explanation
The correct answer is A because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. 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: accounting