Contracts, Transfer, and Escrow Practice Question
Question
A property manager is preparing a written response involving statute of frauds. Which statement is the most accurate exam answer? (Item 62)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. Recognize when real estate agreements generally must be in writing to be enforceable.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
B. Recognize when real estate agreements generally must be in writing to be enforceable.
Explanation
The correct answer is B because statute of frauds requires candidates to recognize when real estate agreements generally must be in writing to be enforceable. 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: easy
- Domain: Contracts, Transfer, and Escrow
- Objective: statute of frauds