Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Washington Real Estate Broker Exam involving statute of frauds and Washington broker licensing structure. Which statement is the best answer? (Item 164)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Washington exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Washington exam practice.
Explanation
The correct answer is D because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: statute of frauds