Contracts, Finance, and Transfer Practice Question

Question

A salesperson notices a possible compliance problem for the Massachusetts Real Estate Salesperson Exam involving prorations and Massachusetts Board of Registration. Which response best applies the rule? (Item 72)

Answer choices

1. A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
2. B. The client’s preference eliminates the need to disclose known material facts.
3. C. The party who complains first automatically receives the remedy requested.
4. D. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Massachusetts exam practice.

Correct Answer

D. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Massachusetts exam practice.

Explanation

The correct answer is D because prorations requires candidates to allocate recurring expenses such as taxes, rent, interest, or assessments. 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: hard
• Domain: Contracts, Finance, and Transfer
• Objective: prorations

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