Valuation and Financing Practice Question
Question
A first-time buyer asks for exam-focused clarification involving deed of trust. Which statement is the most accurate exam answer? (Item 96)
Answer choices
- A. It is optional whenever both parties verbally agree to proceed.
- B. It allows a salesperson to act independently of the responsible broker.
- C. It shifts all responsibility to escrow and eliminates the broker’s duties.
- 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