Contracts, Transfer, and Escrow Practice Question

Question

An escrow officer requests clarification from the broker involving specific performance. What should a California real estate licensee understand? (Item 150)

Answer choices

1. A. It applies only to commercial property and never to residential transactions.
2. B. Identify an equitable remedy compelling performance of a contract.
3. C. It is controlled only by local custom rather than by law, contract, or professional duty.
4. D. It is valid only when the buyer pays cash and no lender is involved.

Correct Answer

B. Identify an equitable remedy compelling performance of a contract.

Explanation

The correct answer is B because specific performance requires candidates to identify an equitable remedy compelling performance of a 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: hard
• Domain: Contracts, Transfer, and Escrow
• Objective: specific performance

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