California Real Estate Practice Exam

When a broker sells six notes and trust deeds taken back by a developer of a new subdivision, he must give to each prospective purchaser a:

1. final public report

2. loan disclosure statements

3. notice of intended sale

4. real property security statement

The correct answer is: final public report

The correct choice is that the broker must provide a final public report to each prospective purchaser when selling notes and trust deeds taken back by a developer of a new subdivision. This report is an essential document that outlines key information about the subdivision, the developer, and the financial terms of the offer. The final public report helps inform potential buyers about potential risks and allows them to make educated decisions regarding their investments. It ensures that all necessary disclosures are made about the property and any related financial commitments, which is particularly critical in real estate transactions involving new developments. Other options are not the primary requirement in this situation. Loan disclosure statements would primarily deal with the specifics of loan agreements rather than the overall report on the subdivision. A notice of intended sale is typically required in different contexts concerning the listing of properties. The real property security statement generally pertains to the security interests in real estate rather than the necessary disclosures regarding the subdivision as a whole.