An agent's duty to account means:
Why Safeguarding and accounting for all money and property entrusted to them Is Correct
Answer B: Safeguarding and accounting for all money and property entrusted to them
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
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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Related California Questions
- Under California law, a real estate broker who manages property for clients must maintain a separate trust account for client funds. Mixing client funds with the broker's personal funds is called:Agency
- A salesperson who works for Broker A receives an earnest money deposit. Without telling Broker A, the salesperson deposits it into the salesperson's own personal account. This is:Trust Funds
- Can a broker keep their own money in a client trust account?Trust Funds
- What is the primary fiduciary duty that requires an agent to always act in the client's best interest?Agency
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- Which of the following records is a broker required to maintain for the trust fund account?Trust Funds
- A real estate licensee in California is found to have commingled client funds with their personal bank account. This violates:DRE & Licensing
- Which fiduciary duty requires an agent to follow all lawful instructions of the client?Agency
Key Terms to Know
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same 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.
State-Specific Concepts
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