Real Estate Principles Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a Texas real estate transaction involving closing costs. What should the licensee understand? (Item 190)
Answer choices
- A. A verbal understanding always replaces any written requirement in a real estate transaction.
- B. Identify prorations, credits, debits, title insurance, and settlement charges.
- C. The licensee should avoid documenting the issue to reduce the chance of later questions.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
Correct Answer
B. Identify prorations, credits, debits, title insurance, and settlement charges.
Explanation
The correct answer is B because closing costs requires candidates to identify prorations, credits, debits, title insurance, and settlement charges. 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: closing costs