Real Estate Principles Practice Question
Question
A property owner asks how a rule affects marketability in a Florida real estate transaction involving settlement. Which statement is the best answer? (Item 156)
Answer choices
- A. The licensee should avoid documenting the issue to reduce the chance of later questions.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- C. A verbal understanding always replaces any written requirement in a real estate transaction.
- D. Recognize closing statement entries, prorations, and transaction costs.
Correct Answer
D. Recognize closing statement entries, prorations, and transaction costs.
Explanation
The correct answer is D because settlement requires candidates to recognize closing statement entries, prorations, and transaction costs. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.
Question details
- Difficulty: hard
- Domain: Real Estate Principles
- Objective: settlement