Agency
The duty of 'accounting' in agency requires a licensee to:
APrepare annual tax returns for the client
BKeep accurate records of all funds received and disbursed on behalf of the client✓ Correct
CProvide the client with a monthly profit/loss statement
DFile financial reports with AREC quarterly
Explanation
The fiduciary duty of accounting means the agent must safeguard all client funds and property and provide accurate records of any financial transactions handled on the client's behalf.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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