Valuation and Financing Practice Question
Question
A first-time buyer asks for exam-focused clarification involving RESPA. Which statement is the most accurate exam answer? (Item 39)
Answer choices
- A. It is valid only when the buyer pays cash and no lender is involved.
- B. It prevents any later disclosure, even when new facts become known.
- C. Identify settlement service disclosure and referral-fee restrictions.
- D. It applies only to commercial property and never to residential transactions.
Correct Answer
C. Identify settlement service disclosure and referral-fee restrictions.
Explanation
The correct answer is C because RESPA requires candidates to identify settlement service disclosure and referral-fee restrictions. 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: hard
- Domain: Valuation and Financing
- Objective: RESPA