Valuation and Financing Practice Question
Question
An escrow officer requests clarification from the broker involving foreclosure. Which response best protects the client and keeps the transaction compliant? (Item 17)
Answer choices
- A. Distinguish power-of-sale nonjudicial foreclosure concepts from judicial foreclosure.
- 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. It makes oral promises enforceable in every real estate transaction.
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