Contracts and Promulgated Forms Practice Question

Question

A buyer and seller disagree about a closing issue in a Texas real estate transaction involving title objections. What should the licensee understand? (Item 32)

Answer choices

1. A. The rule applies only to commercial property and never to residential property.
2. B. The broker may mix client funds with business funds if the amount is small and later reconciled.
3. C. The issue can be ignored if both parties want the transaction to close quickly.
4. D. Identify title commitment review and objection timing concepts.

Correct Answer

D. Identify title commitment review and objection timing concepts.

Explanation

The correct answer is D because title objections requires candidates to identify title commitment review and objection timing concepts. 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: hard
• Domain: Contracts and Promulgated Forms
• Objective: title objections

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