Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Massachusetts Real Estate Salesperson Exam involving trust money and Massachusetts Board of Registration. Which answer best reduces risk? (Item 173)
Answer choices
- A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Massachusetts exam practice.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Massachusetts exam practice.
Explanation
The correct answer is A because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. 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: trust money