Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Pennsylvania Real Estate Salesperson Exam involving closing statement and state agreement and disclosure practice. Which answer best reduces risk? (Item 107)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. Distinguish buyer and seller debits and credits at settlement in a way that fits Pennsylvania exam practice.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
C. Distinguish buyer and seller debits and credits at settlement in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is C because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. The Pennsylvania 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: closing statement