Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Ohio Real Estate Salesperson Exam involving escrow and Ohio Division of Real Estate. Which statement is the best answer? (Item 70)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Identify neutral handling of funds and documents under written instructions 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. Identify neutral handling of funds and documents under written instructions in a way that fits Ohio exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow