Valuation and Financing Practice Question
Question
A buyer and seller disagree about a transaction term involving foreclosure. Which response best protects the client and keeps the transaction compliant? (Item 37)
Answer choices
- A. Distinguish power-of-sale nonjudicial foreclosure concepts from judicial foreclosure.
- 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. It can be ignored if the transaction is expected to close quickly.
Correct Answer
A. Distinguish power-of-sale nonjudicial foreclosure concepts from judicial foreclosure.
Explanation
The correct answer is A because foreclosure requires candidates to distinguish power-of-sale nonjudicial foreclosure concepts from judicial foreclosure. 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: foreclosure