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 inspection contingency and state disclosure practice. What should the licensee understand? (Item 46)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Recognize buyer investigation rights and repair negotiation concepts 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. Recognize buyer investigation rights and repair negotiation concepts in a way that fits South Carolina exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: inspection contingency