Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the Indiana Real Estate Broker Exam involving escrow and Indiana Real Estate Commission. Which statement is the best answer? (Item 70)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Indiana exam practice.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits Indiana exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: escrow