Contracts, Transfer, and Escrow Practice Question

Question

An investor is comparing two properties involving statute of frauds. Which statement is the most accurate exam answer? (Item 42)

Answer choices

1. A. It prevents any later disclosure, even when new facts become known.
2. B. Recognize when real estate agreements generally must be in writing to be enforceable.
3. C. It applies only to commercial property and never to residential transactions.
4. D. It is controlled only by local custom rather than by law, contract, or professional duty.

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

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