Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the North Carolina Real Estate Broker Exam involving financing contingency and provisional broker supervision. Which response best applies the rule? (Item 81)
Answer choices
- A. Understand buyer protection tied to loan approval or financing terms in a way that fits North Carolina exam practice.
- B. A verbal understanding always replaces a written real estate requirement.
- C. The safest practice is to avoid written documentation so fewer questions are raised later.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
A. Understand buyer protection tied to loan approval or financing terms in a way that fits North Carolina exam practice.
Explanation
The correct answer is A because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: financing contingency