Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the New Jersey Real Estate Salesperson Exam involving commingling and New Jersey disclosure and consumer protection practice. Which statement is the best answer? (Item 210)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Identify improper mixing of client funds and broker funds in a way that fits New Jersey exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Identify improper mixing of client funds and broker funds in a way that fits New Jersey exam practice.
Explanation
The correct answer is B because commingling requires candidates to identify improper mixing of client funds and broker funds. The New Jersey 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: medium
- Domain: Agency and License Law
- Objective: commingling