Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Utah Real Estate Sales Agent Exam involving statute of frauds and state forms and disclosure awareness. Which statement is most accurate for exam purposes? (Item 38)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Utah exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. 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 B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds