Kovats Real Estate School Practice Test

What must a broker do when preparing a document related to a real estate transaction?

1. Keep the document until the deal closes

2. Give a copy to all parties signing it at the time of signature

3. Send a copy to the local real estate office

4. File it in a secure location

The correct answer is: Give a copy to all parties signing it at the time of signature

In a real estate transaction, it is essential for a broker to provide a copy of any document that requires signature to all parties involved at the time of signing. This action serves several important purposes: it ensures transparency, allows all parties to have access to the same information, and helps to prevent disputes that may arise from misunderstandings regarding the contents of the document. Providing a copy at the time of signing is a standard practice that demonstrates professionalism and respect for all parties’ rights. It also fulfills legal obligations, as many jurisdictions require brokers to provide signed documents to parties involved in a transaction. This not only aids in maintaining a clear record of the agreement but also supports the binding nature of the document, as all parties have direct access to their commitments. Other options, while they may involve appropriate actions in different contexts, do not align with the critical requirement of immediate delivery of signed documents to involved parties, which is a cornerstone of professional practice in real estate transactions.