Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Georgia Real Estate Salesperson Exam involving earnest money and community association and closing-attorney practice awareness. Which statement is the best answer? (Item 98)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Recognize deposit handling and contract default implications in a way that fits Georgia exam practice.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
B. Recognize deposit handling and contract default implications in a way that fits Georgia exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: earnest money