Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Tennessee Affiliate Broker Exam involving accounting and Tennessee Real Estate Commission. Which statement is the best answer? (Item 61)
Answer choices
- A. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Tennessee exam practice.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
A. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Tennessee exam practice.
Explanation
The correct answer is A because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. The Tennessee 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: easy
- Domain: Agency and License Law
- Objective: accounting