Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Michigan Real Estate Salesperson Exam involving financing contingency and agency and trust-money compliance. Which statement is the best answer? (Item 45)
Answer choices
- A. Understand buyer protection tied to loan approval or financing terms in a way that fits Michigan exam practice.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
A. Understand buyer protection tied to loan approval or financing terms in a way that fits Michigan exam practice.
Explanation
The correct answer is A because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. 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: financing contingency