Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the Arizona Real Estate Salesperson Exam involving earnest money and Arizona subdivision and disclosure practice. Which response best applies the rule? (Item 134)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Recognize deposit handling and contract default implications in a way that fits Arizona exam practice.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
B. Recognize deposit handling and contract default implications in a way that fits Arizona exam practice.
Explanation
The correct answer is B because earnest money requires candidates to recognize deposit handling and contract default implications. 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: earnest money