Principles, Property, and Land Use Practice Question

Question

A license applicant is reviewing a practice scenario for the Pennsylvania Real Estate Salesperson Exam involving loan-to-value and state agreement and disclosure practice. Which response best applies the rule? (Item 179)

Answer choices

1. A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
2. B. The client’s preference eliminates the need to disclose known material facts.
3. C. Interpret the relationship between loan amount and property value in a way that fits Pennsylvania exam practice.
4. D. The party who complains first automatically receives the remedy requested.

Correct Answer

C. Interpret the relationship between loan amount and property value in a way that fits Pennsylvania 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 Pennsylvania 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

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