New Jersey Real Estate License Exam Practice Question
A buyer's agent should be sure the client understands that in every valid contract for sale, the buyer:
Correct Answer: A
Rationale: In every valid contract for sale, the buyer holds equitable title, which means they have a legal interest in the property, even before formal ownership is transferred. This ensures the buyer's rights are protected throughout the transaction.
Option B is incorrect as a down payment, while common, is not mandatory in all contracts. Option C is misleading; the right of immediate possession depends on the terms of the contract and may not be granted until closing. Option D is also not universally required; financing contingencies can vary based on the agreement between buyer and seller. Understanding equitable title is crucial for buyers to grasp their rights in a transaction.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now