Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the New Jersey Real Estate Salesperson Exam involving statute of frauds and New Jersey Real Estate Commission. What should the licensee understand? (Item 56)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits New Jersey exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits New Jersey exam practice.
Explanation
The correct answer is D because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: statute of frauds