Agency

What is the 'duty of accounting' owed by a Pennsylvania real estate agent to their principal?

AThe duty to file tax returns on behalf of the client
BThe duty to account for all funds and property received from or on behalf of the client, keeping accurate records and not commingling funds✓ Correct
CThe duty to provide quarterly financial statements to seller clients
DThe obligation to report commission earnings to PREC annually

Explanation

The fiduciary duty of accounting requires an agent to maintain accurate records of all money or property received in connection with the agency relationship, provide an accounting upon request, and not commingle client funds with personal funds. In Pennsylvania, this duty is enforced by RELRA's escrow requirements — all client funds must be deposited in separate escrow accounts, with written records maintained.

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