Valuation and Financing Practice Question
Question
A license applicant is studying a California practice scenario involving seller financing. Which statement best describes seller financing? (Item 35)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. It can be ignored if the transaction is expected to close quickly.
- C. Identify carryback financing and related disclosure concerns.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
C. Identify carryback financing and related disclosure concerns.
Explanation
The correct answer is C because seller financing requires candidates to identify carryback financing and related disclosure concerns. 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: seller financing