License Law and Agency Practice Question

Question

A buyer and seller disagree about a closing issue in a New York real estate transaction involving escrow and trust funds. Which answer best reduces transaction risk? (Item 177)

Answer choices

  1. A. Handle deposits and client funds according to broker trust-account obligations.
  2. B. The party who complains first automatically receives the legal remedy requested.
  3. C. Escrow automatically assumes all brokerage disclosure and agency duties.
  4. D. The client’s preference eliminates the need to disclose known material facts.

Correct Answer

A. Handle deposits and client funds according to broker trust-account obligations.

Explanation

The correct answer is A because escrow and trust funds requires candidates to handle deposits and client funds according to broker trust-account obligations. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.

Question details

  • Difficulty: easy
  • Domain: License Law and Agency
  • Objective: escrow and trust funds

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