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 escrow and South Carolina Real Estate Commission. Which response best applies the rule? (Item 16)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Identify neutral handling of funds and documents under written instructions in a way that fits South Carolina exam practice.
Correct Answer
D. Identify neutral handling of funds and documents under written instructions in a way that fits South Carolina exam practice.
Explanation
The correct answer is D because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow