Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Ohio Real Estate Salesperson Exam involving commingling and state-specific license supervision. Which answer best reduces risk? (Item 48)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Identify improper mixing of client funds and broker funds in a way that fits Ohio exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits Ohio exam practice.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds and broker funds. The Ohio 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: hard
- Domain: Agency and License Law
- Objective: commingling