Valuation and Financing Practice Question
Question
A buyer and seller disagree about a transaction term involving conventional loans. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 94)
Answer choices
- A. It allows a salesperson to act independently of the responsible broker.
- B. Distinguish non-government-insured mortgage loans.
- C. It shifts all responsibility to escrow and eliminates the broker’s duties.
- D. It makes oral promises enforceable in every real estate transaction.
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