Contracts, Transfer, and Escrow Practice Question
Question
A license applicant is studying a California practice scenario involving purchase agreement. Which statement is the most accurate exam answer? (Item 6)
Answer choices
- A. It is primarily a tax rule with no effect on brokerage practice.
- B. Recognize essential terms in a residential purchase contract.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. It can be ignored if the transaction is expected to close quickly.
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