Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Massachusetts Real Estate Salesperson Exam involving contingencies and lead paint and consumer disclosure awareness. Which answer best reduces risk? (Item 151)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Massachusetts exam practice.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
C. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because contingencies requires candidates to identify conditions that must be satisfied or waived before obligations become final. 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: contingencies