Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the South Carolina Real Estate Salesperson Exam involving escrow and agency disclosure and broker supervision. Which statement is most accurate for exam purposes? (Item 34)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits South Carolina exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits South Carolina exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: escrow