Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Pennsylvania Real Estate Salesperson Exam involving closing statement and Pennsylvania Real Estate Commission. What should the licensee understand? (Item 71)
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