Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the Washington Real Estate Broker Exam involving earnest money and agency law pamphlet concepts. Which answer best reduces risk? (Item 26)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Recognize deposit handling and contract default implications in a way that fits Washington exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Recognize deposit handling and contract default implications in a way that fits Washington exam practice.
Explanation
The correct answer is B because earnest money requires candidates to recognize deposit handling and contract default implications. 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: earnest money