Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Michigan Real Estate Salesperson Exam involving escrow and Michigan occupational licensing regulation. Which statement is most accurate for exam purposes? (Item 124)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Identify neutral handling of funds and documents under written instructions in a way that fits Michigan exam practice.
Correct Answer
D. Identify neutral handling of funds and documents under written instructions in a way that fits Michigan exam practice.
Explanation
The correct answer is D because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: escrow