Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the New Jersey Real Estate Salesperson Exam involving escrow and attorney review awareness. Which statement is most accurate for exam purposes? (Item 34)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits New Jersey exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits New Jersey exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow