Real Estate Principles Practice Question

Question

A buyer asks a licensee for an exam-focused explanation in a New York real estate transaction involving liens. Which statement is the best answer? (Item 316)

Answer choices

1. A. The requirement matters only if the buyer uses lender financing.
2. B. The salesperson may handle the matter independently without broker involvement when compensation is expected.
3. C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
4. D. Identify voluntary and involuntary liens and how they may affect transfer or priority.

Correct Answer

D. Identify voluntary and involuntary liens and how they may affect transfer or priority.

Explanation

The correct answer is D because liens requires candidates to identify voluntary and involuntary liens and how they may affect transfer or priority. 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: hard
• Domain: Real Estate Principles
• Objective: liens

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