Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Massachusetts Real Estate Salesperson Exam involving recording and Massachusetts Board of Registration. Which answer best reduces risk? (Item 15)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. Recognize constructive notice and priority effects of recording in a way that fits Massachusetts exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Recognize constructive notice and priority effects of recording in a way that fits Massachusetts exam practice.
Explanation
The correct answer is C because recording requires candidates to recognize constructive notice and priority effects of recording. 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: recording