Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Georgia Real Estate Salesperson Exam involving closing statement and brokerage relationship disclosure. Which answer best reduces risk? (Item 197)
Answer choices
- A. Distinguish buyer and seller debits and credits at settlement in a way that fits Georgia exam practice.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
A. Distinguish buyer and seller debits and credits at settlement in a way that fits Georgia exam practice.
Explanation
The correct answer is A because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. 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: closing statement