Valuation and Financing Practice Question
Question
A listing agent notices a potential compliance issue involving RESPA. Which statement is the most accurate exam answer? (Item 19)
Answer choices
- A. It is primarily a tax rule with no effect on brokerage practice.
- B. It removes the need for written disclosure if the licensee believes the client already knows.
- C. Identify settlement service disclosure and referral-fee restrictions.
- D. It can be ignored if the transaction is expected to close quickly.
Correct Answer
C. Identify settlement service disclosure and referral-fee restrictions.
Explanation
The correct answer is C because RESPA requires candidates to identify settlement service disclosure and referral-fee restrictions. 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: RESPA