Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the Ohio Real Estate Salesperson Exam involving liquidated damages and agency disclosure and brokerage relationship practice. Which statement is the best answer? (Item 193)
Answer choices
- A. Identify pre-agreed damages provisions subject to applicable law in a way that fits Ohio exam practice.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
A. Identify pre-agreed damages provisions subject to applicable law in a way that fits Ohio exam practice.
Explanation
The correct answer is A because liquidated damages requires candidates to identify pre-agreed damages provisions subject to applicable law. 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: liquidated damages