Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the North Carolina Real Estate Broker Exam involving prorations and provisional broker supervision. Which statement is most accurate for exam purposes? (Item 90)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits North Carolina exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits North Carolina exam practice.
Explanation
The correct answer is B because prorations requires candidates to allocate recurring expenses such as taxes, rent, interest, or assessments. 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: prorations