Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the New Jersey Real Estate Salesperson Exam involving recording and attorney review awareness. Which statement is the best answer? (Item 87)
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