Valuation and Financing Practice Question

Question

A license applicant is studying a California practice scenario involving Equal Credit Opportunity Act. Which response best protects the client and keeps the transaction compliant? (Item 140)

Answer choices

1. A. It is primarily a tax rule with no effect on brokerage practice.
2. B. It removes the need for written disclosure if the licensee believes the client already knows.
3. C. It can be ignored if the transaction is expected to close quickly.
4. D. Recognize prohibited credit discrimination.

Correct Answer

D. Recognize prohibited credit discrimination.

Explanation

The correct answer is D because Equal Credit Opportunity Act requires candidates to recognize prohibited credit discrimination. 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: Equal Credit Opportunity Act

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