Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Indiana Real Estate Broker Exam involving inspection contingency and state agency and disclosure practice. What should the licensee understand? (Item 46)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Recognize buyer investigation rights and repair negotiation concepts 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. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Indiana exam practice.
Explanation
The correct answer is B because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. 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: inspection contingency