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 state-specific license supervision. Which response best applies the rule? (Item 200)
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 that many real estate agreements must be written to be enforceable in a way that fits Ohio exam practice.
Correct Answer
D. 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 D 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds