Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the South Carolina Real Estate Salesperson Exam involving commingling and agency disclosure and broker supervision. Which statement is most accurate for exam purposes? (Item 84)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Identify improper mixing of client funds and broker funds in a way that fits South Carolina exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits South Carolina exam practice.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds and broker funds. The South Carolina 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