Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the New Jersey Real Estate Salesperson Exam involving trust money and New Jersey disclosure and consumer protection practice. What should the licensee understand? (Item 47)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits New Jersey exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits New Jersey exam practice.
Explanation
The correct answer is C because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. 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: trust money