Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the New Jersey Real Estate Salesperson Exam involving statute of frauds and attorney review awareness. Which statement is most accurate for exam purposes? (Item 128)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits New Jersey exam practice.
Correct Answer
D. 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 D 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds