Under New Jersey agency law, a licensee's fiduciary duty of accounting requires which of the following actions?
Correct Answer
D) Safeguarding and properly accounting for all funds belonging to clients that come into the licensee's possession
The fiduciary duty of accounting in New Jersey requires a licensee to safeguard all client funds that come into their possession and to provide an accurate accounting of those funds. This duty is closely tied to the trust account requirements under N.J.S.A. 45:15-1 et seq., which mandate that client funds such as earnest money deposits be held in a separate trust or escrow account and never commingled with the licensee's personal or business funds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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