Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Utah Real Estate Sales Agent Exam involving closing statement and Utah Division of Real Estate. What should the licensee understand? (Item 71)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. Distinguish buyer and seller debits and credits at settlement in a way that fits Utah exam practice.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
C. Distinguish buyer and seller debits and credits at settlement in a way that fits Utah exam practice.
Explanation
The correct answer is C because closing statement requires candidates to distinguish buyer and seller debits and credits at settlement. 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: closing statement