Contracts, Finance, and Transfer Practice Question

Question

A salesperson notices a possible compliance problem for the Georgia Real Estate Salesperson Exam involving prorations and brokerage relationship disclosure. What should the licensee understand? (Item 198)

Answer choices

1. A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
2. B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Georgia exam practice.
3. C. The client’s preference eliminates the need to disclose known material facts.
4. D. The party who complains first automatically receives the remedy requested.

Correct Answer

B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Georgia exam practice.

Explanation

The correct answer is B because prorations requires candidates to allocate recurring expenses such as taxes, rent, interest, or assessments. 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: medium
• Domain: Contracts, Finance, and Transfer
• Objective: prorations

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