Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Washington Real Estate Broker Exam involving escrow and Washington broker licensing structure. Which statement is the best answer? (Item 70)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Washington exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits Washington exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow