Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the New Jersey Real Estate Salesperson Exam involving escrow and attorney review awareness. Which answer best reduces risk? (Item 88)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Identify neutral handling of funds and documents under written instructions in a way that fits New Jersey exam practice.
Correct Answer
D. Identify neutral handling of funds and documents under written instructions in a way that fits New Jersey exam practice.
Explanation
The correct answer is D 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: escrow