Valuation and Financing Practice Question
Question
An escrow officer requests clarification from the broker involving fixed-rate loans. Which statement best describes fixed-rate loans? (Item 150)
Answer choices
- A. It makes oral promises enforceable in every real estate transaction.
- B. Identify stable principal-and-interest payments over the loan term.
- C. It is optional whenever both parties verbally agree to proceed.
- D. It allows a salesperson to act independently of the responsible broker.
Correct Answer
B. Identify stable principal-and-interest payments over the loan term.
Explanation
The correct answer is B because fixed-rate loans requires candidates to identify stable principal-and-interest payments over the loan term. 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: fixed-rate loans