Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the South Carolina Real Estate Salesperson Exam involving inspection contingency and state disclosure practice. Which response best applies the rule? (Item 100)
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. Recognize buyer investigation rights and repair negotiation concepts in a way that fits South Carolina exam practice.
Correct Answer
D. Recognize buyer investigation rights and repair negotiation concepts in a way that fits South Carolina exam practice.
Explanation
The correct answer is D because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. 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: inspection contingency