Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Georgia Real Estate Salesperson Exam involving closing statement and Georgia Real Estate Commission. What should the licensee understand? (Item 71)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. Distinguish buyer and seller debits and credits at settlement in a way that fits Georgia exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Distinguish buyer and seller debits and credits at settlement in a way that fits Georgia exam practice.
Explanation
The correct answer is C 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: closing statement