Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Pennsylvania Real Estate Salesperson Exam involving commingling and Pennsylvania Real Estate Commission. Which statement is most accurate for exam purposes? (Item 174)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Identify improper mixing of client funds and broker funds in a way that fits Pennsylvania exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Identify improper mixing of client funds and broker funds in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because commingling requires candidates to identify improper mixing of client funds and broker funds. The Pennsylvania 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