Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Utah Real Estate Sales Agent Exam involving escrow and sales agent brokerage affiliation. Which statement is most accurate for exam purposes? (Item 34)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Utah exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits Utah exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow