Real Estate Principles Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a Nevada real estate transaction involving finance. Which answer best reduces transaction risk? (Item 32)
Answer choices
- A. The issue can be ignored if both parties want the transaction to close quickly.
- B. The rule applies only to commercial property and never to residential property.
- C. The broker may mix client funds with business funds if the amount is small and later reconciled.
- D. Recognize loan types, trust deeds, foreclosure concepts, and lending disclosures.
Correct Answer
D. Recognize loan types, trust deeds, foreclosure concepts, and lending disclosures.
Explanation
The correct answer is D because finance requires candidates to recognize loan types, trust deeds, foreclosure concepts, and lending disclosures. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Nevada exam practice.
Question details
- Difficulty: hard
- Domain: Real Estate Principles
- Objective: finance