Real Estate Principles Practice Question
Question
A buyer and seller disagree about a closing issue in a Texas real estate transaction involving finance. Which statement is the best answer? (Item 69)
Answer choices
- A. Recognize loan types, lien theory concepts, deed of trust practice, and loan disclosures.
- B. The issue can be ignored if both parties want the transaction to close quickly.
- C. The rule applies only to commercial property and never to residential property.
- D. The broker may mix client funds with business funds if the amount is small and later reconciled.
Correct Answer
A. Recognize loan types, lien theory concepts, deed of trust practice, and loan disclosures.
Explanation
The correct answer is A because finance requires candidates to recognize loan types, lien theory concepts, deed of trust practice, and loan disclosures. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Texas exam practice.
Question details
- Difficulty: easy
- Domain: Real Estate Principles
- Objective: finance