Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the South Carolina Real Estate Salesperson Exam involving statute of frauds and South Carolina Real Estate Commission. What should the licensee understand? (Item 56)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits South Carolina exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits South Carolina 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 South Carolina 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