Rhode Island License Law
Under RIGL Chapter 5-20.5, which of the following is grounds for license revocation in Rhode Island?
AFailing to complete continuing education in the last renewal period
BCommingling client funds with personal funds✓ Correct
CAdvertising a property without including the MLS number
DNot responding to a buyer inquiry within 24 hours
Explanation
Commingling client funds with personal funds is a serious violation under Rhode Island license law and is grounds for revocation. Licensees must maintain client funds in separate escrow or trust accounts.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
State-Specific Concepts
Continuing EducationTrust Account RulesLicense Law
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