Valuation and Financing Practice Question
Question
A first-time buyer asks for exam-focused clarification involving seller financing. Which statement best describes seller financing? (Item 115)
Answer choices
- A. It prevents any later disclosure, even when new facts become known.
- B. It applies only to commercial property and never to residential transactions.
- C. Identify carryback financing and related disclosure concerns.
- D. It is controlled only by local custom rather than by law, contract, or professional duty.
Correct Answer
C. Identify carryback financing and related disclosure concerns.
Explanation
The correct answer is C because seller financing requires candidates to identify carryback financing and related disclosure concerns. 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: medium
- Domain: Valuation and Financing
- Objective: seller financing