Contracts, Transfer, and Escrow Practice Question
Question
A first-time buyer asks for exam-focused clarification involving purchase agreement. Which statement is the most accurate exam answer? (Item 86)
Answer choices
- A. It is valid only when the buyer pays cash and no lender is involved.
- B. Recognize essential terms in a residential purchase contract.
- C. It prevents any later disclosure, even when new facts become known.
- D. It applies only to commercial property and never to residential transactions.
Correct Answer
B. Recognize essential terms in a residential purchase contract.
Explanation
The correct answer is B because purchase agreement requires candidates to recognize essential terms in a residential purchase contract. 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: purchase agreement