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 statute of frauds and Pennsylvania Real Estate Commission. Which statement is the best answer? (Item 164)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Pennsylvania exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Pennsylvania 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 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: statute of frauds