Contracts, Transfer, and Escrow Practice Question
Question
A first-time buyer asks for exam-focused clarification involving closing statement. Which statement best describes closing statement? (Item 39)
Answer choices
- A. It is valid only when the buyer pays cash and no lender is involved.
- B. It prevents any later disclosure, even when new facts become known.
- C. Identify debits and credits between buyer and seller.
- D. It applies only to commercial property and never to residential transactions.
Correct Answer
C. Identify debits and credits between buyer and seller.
Explanation
The correct answer is C because closing statement requires candidates to identify debits and credits between buyer and seller. 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: hard
- Domain: Contracts, Transfer, and Escrow
- Objective: closing statement