Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the North Carolina Real Estate Broker Exam involving trust money and provisional broker supervision. Which answer best reduces risk? (Item 83)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits North Carolina exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits North Carolina 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 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: trust money