Valuation and Financing Practice Question
Question
A seller is reviewing documents before accepting an offer involving RESPA. Which statement is the most accurate exam answer? (Item 59)
Answer choices
- A. It allows a salesperson to act independently of the responsible broker.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. Identify settlement service disclosure and referral-fee restrictions.
- D. It makes oral promises enforceable in every real estate transaction.
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