Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Washington Real Estate Broker Exam involving specific performance and seller disclosure and environmental awareness. What should the licensee understand? (Item 48)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. Recognize a court order requiring contract performance in appropriate cases in a way that fits Washington exam practice.
Correct Answer
D. Recognize a court order requiring contract performance in appropriate cases in a way that fits Washington exam practice.
Explanation
The correct answer is D because specific performance requires candidates to recognize a court order requiring contract performance in appropriate cases. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: specific performance