Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the Utah Real Estate Sales Agent Exam involving statute of frauds and state forms and disclosure awareness. Which answer best reduces risk? (Item 92)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Utah exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Utah exam practice.
Explanation
The correct answer is D because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. The Utah reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: hard
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds