Valuation and Financing Practice Question
Question
An investor is comparing two properties involving VA loans. Which statement best describes VA loans? (Item 33)
Answer choices
- A. Recognize guaranty concepts for eligible veterans and service members.
- B. It is controlled only by local custom rather than by law, contract, or professional duty.
- C. It is valid only when the buyer pays cash and no lender is involved.
- D. It prevents any later disclosure, even when new facts become known.
Correct Answer
A. Recognize guaranty concepts for eligible veterans and service members.
Explanation
The correct answer is A because VA loans requires candidates to recognize guaranty concepts for eligible veterans and service members. 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: easy
- Domain: Valuation and Financing
- Objective: VA loans