Principles, Property, and Land Use Practice Question

Question

A broker is correcting a new licensee’s misunderstanding for the Washington Real Estate Broker Exam involving title insurance and seller disclosure and environmental awareness. Which statement is most accurate for exam purposes? (Item 120)

Answer choices

1. A. The affiliated licensee may handle the matter independently without broker responsibility.
2. B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
3. C. The requirement matters only when the buyer obtains institutional financing.
4. D. Recognize protection against covered title defects in a way that fits Washington exam practice.

Correct Answer

D. Recognize protection against covered title defects in a way that fits Washington exam practice.

Explanation

The correct answer is D because title insurance requires candidates to recognize protection against covered title defects. 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: Principles, Property, and Land Use
• Objective: title insurance

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