Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the Massachusetts Real Estate Salesperson Exam involving commingling and lead paint and consumer disclosure awareness. Which response best applies the rule? (Item 156)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. Identify improper mixing of client funds and broker funds in a way that fits Massachusetts exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits Massachusetts exam practice.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds and broker funds. 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: hard
- Domain: Agency and License Law
- Objective: commingling