Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Ohio Real Estate Salesperson Exam involving statute of frauds and Ohio Division of Real Estate. Which response best applies the rule? (Item 110)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Ohio exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Ohio 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 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: statute of frauds