Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Pennsylvania Real Estate Salesperson Exam involving commingling and Pennsylvania Real Estate Commission. Which statement is the best answer? (Item 120)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Identify improper mixing of client funds and broker funds in a way that fits Pennsylvania exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D 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: hard
- Domain: Agency and License Law
- Objective: commingling