Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the Washington Real Estate Broker Exam involving financing contingency and Washington broker licensing structure. Which response best applies the rule? (Item 171)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. Understand buyer protection tied to loan approval or financing terms in a way that fits Washington exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Understand buyer protection tied to loan approval or financing terms in a way that fits Washington 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 Washington 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