Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Washington Real Estate Broker Exam involving trust money and agency law pamphlet concepts. Which response best applies the rule? (Item 191)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Washington exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Washington exam practice.
Explanation
The correct answer is C because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. The Washington 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: trust money