Agency
What is 'accounting' as a fiduciary duty in Nevada real estate?
AThe duty to provide the client with annual financial statements
BThe duty to properly manage and account for all funds and documents entrusted to the agent — keeping accurate records, promptly depositing funds in trust, not commingling funds, and providing an accounting upon request✓ Correct
CThe duty to file the client's tax returns related to the real estate transaction
DA duty only applicable to commercial transactions over $500,000
Explanation
The accounting duty requires Nevada licensees to handle all client funds and documents with proper care: promptly depositing earnest money and other trust funds, maintaining accurate trust account records, not commingling personal funds with client funds, providing a detailed accounting when requested, and disbursing funds only as authorized. This duty is central to trust account management.
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Key Terms to Know
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
LienA 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.
Math Concepts
State-Specific Concepts
Trust Account Rules
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