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 commingling. Which statement is the best answer? (Item 45)
Answer choices
- A. Identify improper mixing of client and broker funds.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- C. A verbal understanding always replaces any written requirement in a real estate transaction.
- D. The licensee should avoid documenting the issue to reduce the chance of later questions.
Correct Answer
A. Identify improper mixing of client and broker funds.
Explanation
The correct answer is A because commingling requires candidates to identify improper mixing of client and broker 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: easy
- Domain: License Law and Agency
- Objective: commingling