Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the Arizona Real Estate Salesperson Exam involving escrow and Arizona subdivision and disclosure practice. Which statement is most accurate for exam purposes? (Item 34)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Arizona exam practice.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits Arizona exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow