Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Massachusetts Real Estate Salesperson Exam involving escrow and broker-salesperson supervision. What should the licensee understand? (Item 142)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Massachusetts exam practice.
- C. The safest practice is to avoid written documentation so fewer questions are raised later.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits Massachusetts exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: escrow