Valuation and Financing Practice Question
Question
A broker is supervising a transaction file involving VA loans. Which statement best describes VA loans? (Item 13)
Answer choices
- A. Recognize guaranty concepts for eligible veterans and service members.
- B. It requires the licensee to favor the other party over the licensee’s own client.
- C. It is primarily a tax rule with no effect on brokerage practice.
- D. It removes the need for written disclosure if the licensee believes the client already knows.
Correct Answer
A. Recognize guaranty concepts for eligible veterans and service members.
Explanation
The correct answer is A because VA loans requires candidates to recognize guaranty concepts for eligible veterans and service members. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: easy
- Domain: Valuation and Financing
- Objective: VA loans