Principles, Property, and Land Use Practice Question

Question

A buyer asks a licensee for an exam-focused explanation for the Pennsylvania Real Estate Salesperson Exam involving title insurance and Pennsylvania Real Estate Commission. Which statement is most accurate for exam purposes? (Item 200)

Answer choices

1. A. The issue can be ignored if the parties want to close quickly.
2. B. The rule applies only to commercial transactions and never to residential transactions.
3. C. Client funds may be mixed with business funds if the broker reconciles the account later.
4. D. Recognize protection against covered title defects in a way that fits Pennsylvania exam practice.

Correct Answer

D. Recognize protection against covered title defects in a way that fits Pennsylvania exam practice.

Explanation

The correct answer is D because title insurance requires candidates to recognize protection against covered title defects. 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: Principles, Property, and Land Use
• Objective: title insurance

Practice more

Start Principles, Property, and Land Use practice

Back to Principles, Property, and Land Use