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 property owner association disclosure awareness. What should the licensee understand? (Item 102)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Identify improper mixing of client funds and broker funds in a way that fits Virginia exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Identify improper mixing of client funds and broker funds in a way that fits Virginia exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: commingling