Contracts, Transfer, and Escrow Practice Question
Question
An escrow officer requests clarification from the broker involving recording. What should a California real estate licensee understand? (Item 36)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- 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