Practice, Math, and Disclosures Practice Question
Question
A buyer and seller disagree about a closing issue in a Florida real estate transaction involving loan math. What should the licensee understand? (Item 159)
Answer choices
- A. The party who complains first automatically receives the legal remedy requested.
- B. Escrow automatically assumes all brokerage disclosure and agency duties.
- C. Apply loan-to-value, points, interest, and amortization concepts at exam level.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Apply loan-to-value, points, interest, and amortization concepts at exam level.
Explanation
The correct answer is C because loan math requires candidates to apply loan-to-value, points, interest, and amortization concepts at exam level. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.
Question details
- Difficulty: medium
- Domain: Practice, Math, and Disclosures
- Objective: loan math