Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the Utah Real Estate Sales Agent Exam involving trust money and Utah Division of Real Estate. Which statement is the best answer? (Item 65)
Answer choices
- A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Utah exam practice.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
A. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Utah exam practice.
Explanation
The correct answer is A because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. The Utah 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: trust money