Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Indiana Real Estate Broker Exam involving closing statement and Indiana Real Estate Commission. Which answer best reduces risk? (Item 17)
Answer choices
- A. Distinguish buyer and seller debits and credits at settlement in a way that fits Indiana exam practice.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
A. Distinguish buyer and seller debits and credits at settlement in a way that fits Indiana exam practice.
Explanation
The correct answer is A because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. The Indiana 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: closing statement