Real Estate Principles Practice Question
Question
A client wants to know what should be documented in writing in a New York real estate transaction involving mortgage financing. What should the licensee understand? (Item 45)
Answer choices
- A. Identify loan types, loan-to-value concepts, points, amortization, and borrower obligations.
- B. Escrow automatically assumes all brokerage disclosure and agency duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. The party who complains first automatically receives the legal remedy requested.
Correct Answer
A. Identify loan types, loan-to-value concepts, points, amortization, and borrower obligations.
Explanation
The correct answer is A because mortgage financing requires candidates to identify loan types, loan-to-value concepts, points, amortization, and borrower obligations. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.
Question details
- Difficulty: easy
- Domain: Real Estate Principles
- Objective: mortgage financing