Contracts, Transfer, and Escrow Practice Question
Question
A first-time buyer asks for exam-focused clarification involving escrow instructions. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 153)
Answer choices
- A. Recognize neutral third-party handling of documents and funds under instructions.
- 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. It makes oral promises enforceable in every real estate transaction.
Correct Answer
A. Recognize neutral third-party handling of documents and funds under instructions.
Explanation
The correct answer is A because escrow instructions requires candidates to recognize neutral third-party handling of documents and funds under instructions. 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: escrow instructions