Principles, Property, and Land Use Practice Question
Question
A property manager asks how a rule affects a rental property for the Indiana Real Estate Broker Exam involving loan-to-value and Indiana Real Estate Commission. Which response best applies the rule? (Item 79)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. Interpret the relationship between loan amount and property value in a way that fits Indiana exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Interpret the relationship between loan amount and property value in a way that fits Indiana exam practice.
Explanation
The correct answer is C because loan-to-value requires candidates to interpret the relationship between loan amount and property value. The Indiana reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Principles, Property, and Land Use
- Objective: loan-to-value