Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the New Jersey Real Estate Salesperson Exam involving statute of frauds and New Jersey disclosure and consumer protection practice. What should the licensee understand? (Item 146)
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