Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Georgia Real Estate Salesperson Exam involving recording and Georgia Real Estate Commission. Which statement is the best answer? (Item 177)
Answer choices
- A. Recognize constructive notice and priority effects of recording 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. Recognize constructive notice and priority effects of recording in a way that fits Georgia exam practice.
Explanation
The correct answer is A because recording requires candidates to recognize constructive notice and priority effects of recording. 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: recording