Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Michigan Real Estate Salesperson Exam involving closing statement and agency and trust-money compliance. What should the licensee understand? (Item 161)
Answer choices
- A. Distinguish buyer and seller debits and credits at settlement in a way that fits Michigan exam practice.
- 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. The party who complains first automatically receives the remedy requested.
Correct Answer
A. Distinguish buyer and seller debits and credits at settlement in a way that fits Michigan exam practice.
Explanation
The correct answer is A because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. The Michigan 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: closing statement