Agency
A California real estate broker's duty of 'accounting' to their principal requires the broker to:
APrepare annual tax returns for the seller
BKeep accurate records of all funds received on behalf of the principal and promptly deliver all funds due✓ Correct
CProvide the principal with monthly profit-and-loss statements
DDeposit all commission income into a client trust account
Explanation
The duty of accounting requires the broker to maintain accurate records of all client funds, promptly deposit client funds into a designated trust account, and provide an accounting of all monies received and disbursed on behalf of the principal.
Related California Agency Questions
- Which of the following is an example of 'puffing'?
- In California, a listing agent who also brings the buyer and represents both parties must disclose dual agency:
- An agent who locates a ready, willing, and able buyer for a property, but who was never authorized by the seller, may still claim a commission under what legal theory?
- An agent who secretly purchases a listing from their own seller without disclosure has violated which fiduciary duty?
- An agent who acts beyond the scope of their authority without the principal's consent may expose themselves to liability for:
- When an agent creates an agency relationship through actions rather than an explicit agreement, this is called:
- A real estate agent must disclose their agency relationship to all parties:
- What is 'ratification' in the context of agency law?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →