Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Massachusetts Real Estate Salesperson Exam involving accounting and broker-salesperson supervision. Which statement is most accurate for exam purposes? (Item 25)
Answer choices
- A. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Massachusetts exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
A. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Massachusetts 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 Massachusetts 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