Contracts, Transfer, and Escrow Practice Question
Question
An investor is comparing two properties involving specific performance. What should a California real estate licensee understand? (Item 90)
Answer choices
- A. It applies only to commercial property and never to residential transactions.
- B. Identify an equitable remedy compelling performance of a contract.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- 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