Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Massachusetts Real Estate Salesperson Exam involving purchase agreement and Massachusetts Board of Registration. Which statement is most accurate for exam purposes? (Item 167)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Identify essential residential sale terms and buyer/seller obligations in a way that fits Massachusetts exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Identify essential residential sale terms and buyer/seller obligations in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because purchase agreement requires candidates to identify essential residential sale terms and buyer/seller obligations. 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: purchase agreement