Valuation and Financing Practice Question
Question
A listing agent notices a potential compliance issue involving deed of trust. Which statement is the most accurate exam answer? (Item 76)
Answer choices
- A. It is controlled only by local custom rather than by law, contract, or professional duty.
- B. It is valid only when the buyer pays cash and no lender is involved.
- C. It prevents any later disclosure, even when new facts become known.
- D. Recognize California mortgage practice commonly using trustee, trustor, and beneficiary.
Correct Answer
D. Recognize California mortgage practice commonly using trustee, trustor, and beneficiary.
Explanation
The correct answer is D because deed of trust requires candidates to recognize California mortgage practice commonly using trustee, trustor, and beneficiary. 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: deed of trust