Real Estate Principles Practice Question
Question
A transaction coordinator flags a compliance question in a New York real estate transaction involving contracts. Which statement is most accurate for exam purposes? (Item 286)
Answer choices
- A. The rule applies only to commercial property and never to residential property.
- B. Recognize offer, acceptance, consideration, capacity, lawful purpose, contingencies, and breach remedies.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. The issue can be ignored if both parties want the transaction to close quickly.
Correct Answer
B. Recognize offer, acceptance, consideration, capacity, lawful purpose, contingencies, and breach remedies.
Explanation
The correct answer is B because contracts requires candidates to recognize offer, acceptance, consideration, capacity, lawful purpose, contingencies, and breach remedies. 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: contracts