Practice and Disclosures Practice Question

Question

A client wants to know what should be documented in writing in a Nevada real estate transaction involving transaction risk management. Which response best applies the rule? (Item 130)

Answer choices

1. A. The issue can be ignored if both parties want the transaction to close quickly.
2. B. Use written documentation, timely disclosures, and broker escalation.
3. C. The rule applies only to commercial property and never to residential property.
4. D. The broker may mix client funds with business funds if the amount is small and later reconciled.

Correct Answer

B. Use written documentation, timely disclosures, and broker escalation.

Explanation

The correct answer is B because transaction risk management requires candidates to use written documentation, timely disclosures, and broker escalation. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Nevada exam practice.

Question details

• Difficulty: medium
• Domain: Practice and Disclosures
• Objective: transaction risk management

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