Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Arizona Real Estate Salesperson Exam involving recording and Arizona subdivision and disclosure practice. Which statement is the best answer? (Item 87)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Recognize constructive notice and priority effects of recording in a way that fits Arizona exam practice.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
C. Recognize constructive notice and priority effects of recording in a way that fits Arizona exam practice.
Explanation
The correct answer is C because recording requires candidates to recognize constructive notice and priority effects of recording. 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: recording