Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Indiana Real Estate Broker Exam involving statute of frauds and Indiana Real Estate Commission. What should the licensee understand? (Item 56)
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 that many real estate agreements must be written to be enforceable in a way that fits Indiana exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Indiana exam practice.
Explanation
The correct answer is D because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds