Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Ohio Real Estate Salesperson Exam involving earnest money and Ohio Division of Real Estate. Which answer best reduces risk? (Item 116)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Recognize deposit handling and contract default implications in a way that fits Ohio exam practice.
Correct Answer
D. Recognize deposit handling and contract default implications in a way that fits Ohio exam practice.
Explanation
The correct answer is D because earnest money requires candidates to recognize deposit handling and contract default implications. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: earnest money