AgencyIntermediateAlabama Exam

The 'duty to account' in a real estate agency means the agent must:

APrepare annual financial statements for the client
BPromptly account for all money and property received on behalf of the principalCorrect
CAccount for all hours spent working for the client
DProvide the principal with a commission accounting before listing, in most cases

Why Promptly account for all money and property received on behalf of the principal Is Correct

Answer B: Promptly account for all money and property received on behalf of the principal

The duty to account requires agents to promptly and accurately account for all funds, documents, and property received or disbursed on behalf of the principal.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

People Also Study

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →