Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Washington Real Estate Broker Exam involving recording and Washington broker licensing structure. Which answer best reduces risk? (Item 15)
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. Recognize constructive notice and priority effects of recording in a way that fits Washington exam practice.
- D. The party who complains first automatically receives the remedy requested.
Correct Answer
C. Recognize constructive notice and priority effects of recording in a way that fits Washington exam practice.
Explanation
The correct answer is C because recording requires candidates to recognize constructive notice and priority effects of recording. 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: recording