Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the New Jersey Real Estate Salesperson Exam involving deed types and attorney review awareness. Which answer best reduces risk? (Item 194)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Distinguish warranty, grant, special warranty, and quitclaim concepts at a high level 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. Distinguish warranty, grant, special warranty, and quitclaim concepts at a high level in a way that fits New Jersey exam practice.
Explanation
The correct answer is B because deed types requires candidates to distinguish warranty, grant, special warranty, and quitclaim concepts at a high level. 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: deed types