Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Massachusetts Real Estate Salesperson Exam involving statute of frauds and Massachusetts Board of Registration. Which answer best reduces risk? (Item 2)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Massachusetts exam practice.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Massachusetts exam practice.
Explanation
The correct answer is B because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: statute of frauds