Real Estate Principles Practice Question
Question
A license applicant is comparing two similar real estate concepts in a New York real estate transaction involving co-ownership. Which statement is the best answer? (Item 14)
Answer choices
- A. The broker may mix client funds with business funds if the amount is small and later reconciled.
- B. Distinguish tenancy in common, joint tenancy, and ownership rights among multiple parties.
- C. The issue can be ignored if both parties want the transaction to close quickly.
- D. The rule applies only to commercial property and never to residential property.
Correct Answer
B. Distinguish tenancy in common, joint tenancy, and ownership rights among multiple parties.
Explanation
The correct answer is B because co-ownership requires candidates to distinguish tenancy in common, joint tenancy, and ownership rights among multiple parties. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.
Question details
- Difficulty: medium
- Domain: Real Estate Principles
- Objective: co-ownership