Real Estate Principles Practice Question
Question
A broker reviews a transaction file with a new salesperson in a Texas real estate transaction involving easements and encumbrances. Which answer best reduces transaction risk? (Item 173)
Answer choices
- A. Recognize property rights or burdens that may affect use and title.
- B. The broker may mix client funds with business funds if the amount is small and later reconciled.
- C. The issue can be ignored if both parties want the transaction to close quickly.
- D. The rule applies only to commercial property and never to residential property.
Correct Answer
A. Recognize property rights or burdens that may affect use and title.
Explanation
The correct answer is A because easements and encumbrances requires candidates to recognize property rights or burdens that may affect use and title. 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: easy
- Domain: Real Estate Principles
- Objective: easements and encumbrances