Valuation and Financing Practice Question

Question

A license applicant is studying a California practice scenario involving conventional loans. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 54)

Answer choices

1. A. It is primarily a tax rule with no effect on brokerage practice.
2. B. Distinguish non-government-insured mortgage loans.
3. C. It removes the need for written disclosure if the licensee believes the client already knows.
4. D. It can be ignored if the transaction is expected to close quickly.

Correct Answer

B. Distinguish non-government-insured mortgage loans.

Explanation

The correct answer is B because conventional loans requires candidates to distinguish non-government-insured mortgage loans. 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: conventional loans

Practice more

Start Valuation and Financing practice

Back to Valuation and Financing