Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Massachusetts Real Estate Salesperson Exam involving earnest money and broker-salesperson supervision. What should the licensee understand? (Item 80)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. Recognize deposit handling and contract default implications in a way that fits Massachusetts exam practice.
Correct Answer
D. Recognize deposit handling and contract default implications in a way that fits Massachusetts exam practice.
Explanation
The correct answer is D because earnest money requires candidates to recognize deposit handling and contract default implications. 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: earnest money