Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Georgia Real Estate Salesperson Exam involving earnest money and Georgia Real Estate Commission. Which answer best reduces risk? (Item 116)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. A verbal understanding always replaces a written real estate requirement.
- D. Recognize deposit handling and contract default implications in a way that fits Georgia exam practice.
Correct Answer
D. Recognize deposit handling and contract default implications in a way that fits Georgia exam practice.
Explanation
The correct answer is D because earnest money requires candidates to recognize deposit handling and contract default implications. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: earnest money