AgencyIntermediateDelaware Exam

An agent's duty of accounting requires:

AFiling tax returns for the client

BKeeping accurate records and reporting on all funds handled on behalf of the clientCorrect

CAuditing the other party's financial statements

DPreparing an appraisal of the property's value

Why Keeping accurate records and reporting on all funds handled on behalf of the client Is Correct

Answer B: Keeping accurate records and reporting on all funds handled on behalf of the client

The duty of accounting obligates the agent to safeguard client funds, maintain accurate records, and provide a full accounting of all money received and disbursed on the client's behalf.

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

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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Agency Law Guide

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