Contracts, Transfer, and Escrow Practice Question
Question
An investor is comparing two properties involving recording. What should a California real estate licensee understand? (Item 176)
Answer choices
- A. It is controlled only by local custom rather than by law, contract, or professional duty.
- B. It is valid only when the buyer pays cash and no lender is involved.
- C. It prevents any later disclosure, even when new facts become known.
- D. Recognize constructive notice and priority concepts.
Correct Answer
D. Recognize constructive notice and priority concepts.
Explanation
The correct answer is D because recording requires candidates to recognize constructive notice and priority concepts. 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: recording