Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Ohio Real Estate Salesperson Exam involving trust money and Ohio Division of Real Estate. Which response best applies the rule? (Item 11)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. A verbal understanding always replaces a written real estate requirement.
- C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Ohio exam practice.
- D. The safest practice is to avoid written documentation so fewer questions are raised later.
Correct Answer
C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Ohio 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 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: medium
- Domain: Agency and License Law
- Objective: trust money