California Real Estate Practice Exam

If a salesperson discovers buyers with limited cash are interested in a property but unable to meet cash to new loan requirements, what should the salesperson do?

1. Call the sellers to discuss their taking back a 2nd note

2. Not write any offer, since it will not be what sellers want

3. Write an offer for cash to a new loan and hope for a cooperative lender

4. Write the offer the buyers want to make and present it to the sellers

The correct answer is: Call the sellers to discuss their taking back a 2nd note

The most suitable action for the salesperson, in this case, is to call the sellers to discuss the possibility of them taking back a second note. This approach directly addresses the financial limitations faced by the buyers while simultaneously providing a solution that may incentivize the sellers. By proposing a second note, the sellers could potentially facilitate the transaction, allowing the buyers to secure the property despite their limited cash situation. This option promotes a creative financial strategy that could satisfy both parties: the buyers can move forward with their purchase, and the sellers might benefit from receiving additional financial security in the form of a second note. It reflects an understanding of the complexities involved in real estate transactions and fosters effective negotiation. Other options present less effective strategies. For instance, writing an offer for cash to a new loan with the hope of a cooperative lender does not consider the buyers' current financial limitations and lacks a proactive approach to address their needs. Choosing not to write any offer dismisses the possibility of negotiating terms that could benefit all parties involved. Writing an offer that the buyers simply want to make, without addressing the underlying issue, might result in a rejection from the sellers who are unlikely to accept an offer they cannot realistically fulfill.