Valuation and Financing Practice Question

Question

A salesperson is explaining a concept to a client involving Equal Credit Opportunity Act. Which response best protects the client and keeps the transaction compliant? (Item 60)

Answer choices

1. A. It allows a salesperson to act independently of the responsible broker.
2. B. It shifts all responsibility to escrow and eliminates the broker’s duties.
3. C. It makes oral promises enforceable in every real estate transaction.
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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