Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Virginia Real Estate Salesperson Exam involving escrow and Virginia Real Estate Board. Which statement is the best answer? (Item 70)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Virginia 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. Identify neutral handling of funds and documents under written instructions in a way that fits Virginia exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. The Virginia 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