Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Ohio Real Estate Salesperson Exam involving inspection contingency and Ohio Division of Real Estate. Which statement is most accurate for exam purposes? (Item 118)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Ohio exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Ohio exam practice.
Explanation
The correct answer is B because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. The Ohio 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: inspection contingency