Contracts, Transfer, and Escrow Practice Question

Question

An escrow officer requests clarification from the broker involving exclusive right to sell. Which response best protects the client and keeps the transaction compliant? (Item 45)

Answer choices

1. A. Identify the listing type that generally earns commission regardless of who finds the buyer.
2. B. It is valid only when the buyer pays cash and no lender is involved.
3. C. It prevents any later disclosure, even when new facts become known.
4. D. It applies only to commercial property and never to residential transactions.

Correct Answer

A. Identify the listing type that generally earns commission regardless of who finds the buyer.

Explanation

The correct answer is A because exclusive right to sell requires candidates to identify the listing type that generally earns commission regardless of who finds the buyer. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.

Question details

• Difficulty: medium
• Domain: Contracts, Transfer, and Escrow
• Objective: exclusive right to sell

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