Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the South Carolina Real Estate Salesperson Exam involving financing contingency and agency disclosure and broker supervision. What should the licensee understand? (Item 27)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Understand buyer protection tied to loan approval or financing terms in a way that fits South Carolina exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Understand buyer protection tied to loan approval or financing terms in a way that fits South Carolina exam practice.
Explanation
The correct answer is C because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. 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: financing contingency