Valuation and Financing Practice Question
Question
A property manager is preparing a written response involving seller financing. Which statement best describes seller financing? (Item 15)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. It makes oral promises enforceable in every real estate transaction.
- C. Identify carryback financing and related disclosure concerns.
- D. It is optional whenever both parties verbally agree to proceed.
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