Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Virginia Real Estate Salesperson Exam involving inspection contingency and property owner association disclosure awareness. Which statement is the best answer? (Item 154)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize buyer investigation rights and repair negotiation concepts 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. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Virginia exam practice.
Explanation
The correct answer is B because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. 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: inspection contingency