Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the Michigan Real Estate Salesperson Exam involving contingencies and Michigan occupational licensing regulation. Which response best applies the rule? (Item 169)
Answer choices
- A. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Michigan exam practice.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
A. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Michigan exam practice.
Explanation
The correct answer is A because contingencies requires candidates to identify conditions that must be satisfied or waived before obligations become final. 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: contingencies