Contracts and Promulgated Forms Practice Question
Question
A buyer and seller disagree about a closing issue in a Texas real estate transaction involving third party financing addendum. Which answer best reduces transaction risk? (Item 124)
Answer choices
- A. The issue can be ignored if both parties want the transaction to close quickly.
- B. The rule applies only to commercial property and never to residential property.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. Recognize financing approval and buyer-obligation concepts.
Correct Answer
D. Recognize financing approval and buyer-obligation concepts.
Explanation
The correct answer is D because third party financing addendum requires candidates to recognize financing approval and buyer-obligation 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: third party financing addendum