Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the South Carolina Real Estate Salesperson Exam involving earnest money and South Carolina Real Estate Commission. Which statement is most accurate for exam purposes? (Item 62)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Recognize deposit handling and contract default implications in a way that fits South Carolina exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Recognize deposit handling and contract default implications in a way that fits South Carolina exam practice.
Explanation
The correct answer is B because earnest money requires candidates to recognize deposit handling and contract default implications. 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: earnest money