California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A real estate broker who negotiated a real property loan must record the trust deed:

Before any funds are released
Either a or b
None of the above
Within 10 days of release of funds, provided lender authorizes prior release

The correct answer is: Before any funds are released

The correct choice emphasizes the importance of timing in the recording of a trust deed. Recording the trust deed before any funds are released ensures that the lender's security interest in the property is properly documented and protected from the moment the loan is initiated. This practice establishes priority and helps to inform others about the lender's claim to the property, which is critical in the realm of real estate transactions. In terms of the other options, while it may seem convenient to consider different timeframes, the precise requirement is that the trust deed must be recorded before any financial transaction related to the loan occurs. This ensures that all parties involved are operating under transparent and secure conditions, minimizing risks of any disputes regarding the security interest in the property.