Agency
An agent's duty to 'account' means the agent must:
AFile tax returns on behalf of the client
BKeep accurate records of all funds and documents received✓ Correct
CProvide annual financial statements
DOpen a trust account for every transaction
Explanation
The duty to account requires the agent to keep accurate records of all money and property entrusted to them and to provide accounting statements to the client upon request.
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Key Terms to Know
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.
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
Trust Account Rules
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