Valuation and Financing Practice Question
Question
A property manager is preparing a written response involving fixed-rate loans. Which statement best describes fixed-rate loans? (Item 110)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. Identify stable principal-and-interest payments over the loan term.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
B. Identify stable principal-and-interest payments over the loan term.
Explanation
The correct answer is B because fixed-rate loans requires candidates to identify stable principal-and-interest payments over the loan term. 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: fixed-rate loans