Valuation and Financing Practice Question
Question
A buyer and seller disagree about a transaction term involving deed of trust. Which statement is the most accurate exam answer? (Item 56)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. Recognize California mortgage practice commonly using trustee, trustor, and beneficiary.
Correct Answer
D. Recognize California mortgage practice commonly using trustee, trustor, and beneficiary.
Explanation
The correct answer is D because deed of trust requires candidates to recognize California mortgage practice commonly using trustee, trustor, and beneficiary. 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: deed of trust