License Law and Agency Practice Question
Question
A client wants to know what should be documented in writing in a Texas real estate transaction involving trust money. Which statement is the best answer? (Item 20)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the legal remedy requested.
- C. Escrow automatically assumes all brokerage disclosure and agency duties.
- D. Handle client funds according to broker responsibility and escrow rules.
Correct Answer
D. Handle client funds according to broker responsibility and escrow rules.
Explanation
The correct answer is D because trust money requires candidates to handle client funds according to broker responsibility and escrow rules. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.
Question details
- Difficulty: hard
- Domain: License Law and Agency
- Objective: trust money