Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Illinois Real Estate Broker Exam involving escrow and state escrow and advertising compliance. Which statement is the best answer? (Item 160)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- 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. Identify neutral handling of funds and documents under written instructions in a way that fits Illinois exam practice.
Correct Answer
D. Identify neutral handling of funds and documents under written instructions in a way that fits Illinois exam practice.
Explanation
The correct answer is D because escrow requires candidates to identify neutral handling of funds and documents under written instructions. The Illinois 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: escrow