Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Pennsylvania Real Estate Salesperson Exam involving trust money and Pennsylvania Real Estate Commission. Which statement is most accurate for exam purposes? (Item 119)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Pennsylvania exam practice.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Pennsylvania 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 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: trust money