Valuation and Financing Practice Question

Question

A seller is reviewing documents before accepting an offer involving Equal Credit Opportunity Act. Which response best protects the client and keeps the transaction compliant? (Item 40)

Answer choices

1. A. It is valid only when the buyer pays cash and no lender is involved.
2. B. It prevents any later disclosure, even when new facts become known.
3. C. It applies only to commercial property and never to residential transactions.
4. D. Recognize prohibited credit discrimination.

Correct Answer

D. Recognize prohibited credit discrimination.

Explanation

The correct answer is D because Equal Credit Opportunity Act requires candidates to recognize prohibited credit discrimination. 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: hard
• Domain: Valuation and Financing
• Objective: Equal Credit Opportunity Act

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