Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the New Jersey Real Estate Salesperson Exam involving recording and New Jersey disclosure and consumer protection practice. What should the licensee understand? (Item 159)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Recognize constructive notice and priority effects of recording in a way that fits New Jersey exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Recognize constructive notice and priority effects of recording in a way that fits New Jersey exam practice.
Explanation
The correct answer is C because recording requires candidates to recognize constructive notice and priority effects of recording. 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: recording