Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the North Carolina Real Estate Broker Exam involving recording and material facts and due diligence practice. Which statement is most accurate for exam purposes? (Item 51)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Recognize constructive notice and priority effects of recording in a way that fits North Carolina exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Recognize constructive notice and priority effects of recording in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because recording requires candidates to recognize constructive notice and priority effects of recording. 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: recording