Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the New Jersey Real Estate Salesperson Exam involving statute of frauds and New Jersey Real Estate Commission. Which response best applies the rule? (Item 110)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits New Jersey exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Recognize that many real estate agreements must be written to be enforceable in a way that fits New Jersey exam practice.
Explanation
The correct answer is B because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. The New Jersey 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds