Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the Indiana Real Estate Broker Exam involving commingling and state agency and disclosure practice. What should the licensee understand? (Item 102)
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