License Law and Agency Practice Question
Question
An agent notices a possible issue before a contract is signed in a Nevada real estate transaction involving trust account handling. Which statement is most accurate for exam purposes? (Item 128)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. Recognize proper deposit, accounting, and separation of client funds.
Correct Answer
D. Recognize proper deposit, accounting, and separation of client funds.
Explanation
The correct answer is D because trust account handling requires candidates to recognize proper deposit, accounting, and separation of client funds. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Nevada exam practice.
Question details
- Difficulty: hard
- Domain: License Law and Agency
- Objective: trust account handling