Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving breach and material facts and due diligence practice. What should the licensee understand? (Item 47)
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. Identify nonperformance and available contractual remedies in a way that fits North Carolina exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Identify nonperformance and available contractual remedies in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because breach requires candidates to identify nonperformance and available contractual remedies. 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: breach