Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Massachusetts Real Estate Salesperson Exam involving prorations and broker-salesperson supervision. Which statement is the best answer? (Item 36)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- 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