Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Massachusetts Real Estate Salesperson Exam involving contingencies and Massachusetts Board of Registration. Which answer best reduces risk? (Item 61)
Answer choices
- A. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Massachusetts exam practice.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
A. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Massachusetts exam practice.
Explanation
The correct answer is A because contingencies requires candidates to identify conditions that must be satisfied or waived before obligations become final. The Massachusetts 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: contingencies