Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Virginia Real Estate Salesperson Exam involving financing contingency and agency disclosure and brokerage relationship duties. What should the licensee understand? (Item 27)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. The safest practice is to avoid written documentation so fewer questions are raised later.
- C. Understand buyer protection tied to loan approval or financing terms in a way that fits Virginia exam practice.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
C. Understand buyer protection tied to loan approval or financing terms in a way that fits Virginia exam practice.
Explanation
The correct answer is C because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. 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: financing contingency