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 prorations and Washington broker licensing structure. Which statement is the best answer? (Item 126)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Washington exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Washington exam practice.
Explanation
The correct answer is B because prorations requires candidates to allocate recurring expenses such as taxes, rent, interest, or assessments. 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: prorations