Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the North Carolina Real Estate Broker Exam involving statute of frauds and provisional broker supervision. Which statement is the best answer? (Item 74)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits North Carolina exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Recognize that many real estate agreements must be written to be enforceable in a way that fits North Carolina exam practice.
Explanation
The correct answer is B because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: statute of frauds