Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Virginia Real Estate Salesperson Exam involving commingling and Virginia Real Estate Board. What should the licensee understand? (Item 12)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Identify improper mixing of client funds and broker funds in a way that fits Virginia exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits Virginia exam practice.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds and broker funds. The Virginia 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