Real Estate Principles Practice Question
Question
A broker reviews a transaction file with a new salesperson in a Texas real estate transaction involving leasehold estates. Which answer best reduces transaction risk? (Item 182)
Answer choices
- A. The licensee should avoid documenting the issue to reduce the chance of later questions.
- B. Distinguish estates for years, periodic tenancy, tenancy at will, and holdover possession.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
- D. A verbal understanding always replaces any written requirement in a real estate transaction.
Correct Answer
B. Distinguish estates for years, periodic tenancy, tenancy at will, and holdover possession.
Explanation
The correct answer is B because leasehold estates requires candidates to distinguish estates for years, periodic tenancy, tenancy at will, and holdover possession. 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: Real Estate Principles
- Objective: leasehold estates