Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the Pennsylvania Real Estate Salesperson Exam involving escrow and Pennsylvania Real Estate Commission. Which statement is most accurate for exam purposes? (Item 124)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Identify neutral handling of funds and documents under written instructions in a way that fits Pennsylvania exam practice.
Correct Answer
D. Identify neutral handling of funds and documents under written instructions in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: escrow