Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Virginia Real Estate Salesperson Exam involving statute of frauds and Virginia Real Estate Board. Which answer best reduces risk? (Item 2)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Virginia exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Virginia 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 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: statute of frauds