Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Pennsylvania Real Estate Salesperson Exam involving statute of frauds and consumer notice concepts. Which answer best reduces risk? (Item 182)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Pennsylvania 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. 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 B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds