Contracts, Transfer, and Escrow Practice Question
Question
A listing agent notices a potential compliance issue involving recording. What should a California real estate licensee understand? (Item 76)
Answer choices
- A. It is optional whenever both parties verbally agree to proceed.
- B. It allows a salesperson to act independently of the responsible broker.
- C. It shifts all responsibility to escrow and eliminates the broker’s duties.
- 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