Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Georgia Real Estate Salesperson Exam involving financing contingency and brokerage relationship disclosure. Which response best applies the rule? (Item 81)
Answer choices
- A. Understand buyer protection tied to loan approval or financing terms in a way that fits Georgia exam practice.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
A. Understand buyer protection tied to loan approval or financing terms in a way that fits Georgia exam practice.
Explanation
The correct answer is A because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. The Georgia reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: easy
- Domain: Contracts, Finance, and Transfer
- Objective: financing contingency