Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the North Carolina Real Estate Broker Exam involving closing statement and North Carolina Real Estate Commission. What should the licensee understand? (Item 71)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Distinguish buyer and seller debits and credits at settlement in a way that fits North Carolina exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Distinguish buyer and seller debits and credits at settlement in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. The North Carolina 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: closing statement