Contracts, Transfer, and Escrow Practice Question
Question
A salesperson is explaining a concept to a client involving closing statement. Which statement best describes closing statement? (Item 79)
Answer choices
- A. It is primarily a tax rule with no effect on brokerage practice.
- B. It removes the need for written disclosure if the licensee believes the client already knows.
- C. Identify debits and credits between buyer and seller.
- D. It can be ignored if the transaction is expected to close quickly.
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