Contracts, Transfer, and Escrow Practice Question
Question
A broker is supervising a transaction file involving statute of frauds. Which statement is the most accurate exam answer? (Item 22)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. Recognize when real estate agreements generally must be in writing to be enforceable.
- C. It can be ignored if the transaction is expected to close quickly.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
B. Recognize when real estate agreements generally must be in writing to be enforceable.
Explanation
The correct answer is B because statute of frauds requires candidates to recognize when real estate agreements generally must be in writing to be enforceable. 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: easy
- Domain: Contracts, Transfer, and Escrow
- Objective: statute of frauds