Real Estate Principles Practice Question
Question
An agent notices a possible issue before a contract is signed in a Nevada real estate transaction involving easements and encumbrances. Which statement is the best answer? (Item 220)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. Identify rights, restrictions, and burdens affecting property use and title.
Correct Answer
D. Identify rights, restrictions, and burdens affecting property use and title.
Explanation
The correct answer is D because easements and encumbrances requires candidates to identify rights, restrictions, and burdens affecting property use and title. 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: hard
- Domain: Real Estate Principles
- Objective: easements and encumbrances