Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Pennsylvania Real Estate Salesperson Exam involving inspection contingency and consumer notice concepts. Which statement is most accurate for exam purposes? (Item 28)
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. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Pennsylvania exam practice.
Correct Answer
D. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is D because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. 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: inspection contingency