Contracts, Transfer, and Escrow Practice Question
Question
An escrow officer requests clarification from the broker involving closing statement. Which statement best describes closing statement? (Item 179)
Answer choices
- A. It allows a salesperson to act independently of the responsible broker.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. Identify debits and credits between buyer and seller.
- D. It makes oral promises enforceable in every real estate transaction.
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