Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Arizona Real Estate Salesperson Exam involving closing statement and Arizona Department of Real Estate. Which response best applies the rule? (Item 125)
Answer choices
- A. Distinguish buyer and seller debits and credits at settlement in a way that fits Arizona exam practice.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
A. Distinguish buyer and seller debits and credits at settlement in a way that fits Arizona exam practice.
Explanation
The correct answer is A because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. The Arizona reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: easy
- Domain: Contracts, Finance, and Transfer
- Objective: closing statement