Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the North Carolina Real Estate Broker Exam involving commingling and provisional broker supervision. Which statement is the best answer? (Item 30)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Identify improper mixing of client funds and broker funds in a way that fits North Carolina exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Identify improper mixing of client funds and broker funds in a way that fits North Carolina exam practice.
Explanation
The correct answer is B because commingling requires candidates to identify improper mixing of client funds and broker funds. The North Carolina 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