Contracts and Promulgated Forms Practice Question

Question

An agent notices a possible issue before a contract is signed in a Texas real estate transaction involving closing and possession. What should the licensee understand? (Item 46)

Answer choices

1. A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
2. B. Distinguish closing obligations from possession timing.
3. C. The requirement matters only if the buyer uses lender financing.
4. D. The salesperson may handle the matter independently without broker involvement when compensation is expected.

Correct Answer

B. Distinguish closing obligations from possession timing.

Explanation

The correct answer is B because closing and possession requires candidates to distinguish closing obligations from possession timing. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.

Question details

• Difficulty: medium
• Domain: Contracts and Promulgated Forms
• Objective: closing and possession

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