AgencyIntermediateAlaska Exam

The fiduciary duty of 'accounting' requires a real estate agent to:

AProvide the client with tax advice on the transaction
BKeep accurate records and promptly account for all funds received on behalf of the clientCorrect
CPrepare a CPA-reviewed financial statement for the transaction
DProvide monthly balance sheets of the trust account to all clients, under standard practice

Why Keep accurate records and promptly account for all funds received on behalf of the client Is Correct

Answer B: Keep accurate records and promptly account for all funds received on behalf of the client

The fiduciary duty of accounting (also called care of funds) requires the agent to promptly and accurately account for all money and property received from or on behalf of the client. This includes proper handling of earnest money and providing accounting records when requested.

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.

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