California Real Estate Practice Exam

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A broker's loan statement protects the:

  1. beneficiary

  2. broker

  3. trustee

  4. trustor

The correct answer is: beneficiary

The correct choice pertains to the beneficiary in a real estate context, particularly when dealing with loans and trust deeds. A broker's loan statement serves as documentation that details the terms and balances of the loan from the lender (beneficiary) to the borrower (trustor). It is designed to clarify the obligations of the trustor and ensure that the beneficiary has a clear record of what is owed, including interest, fees, and any other charges. The purpose of this statement is to protect the interests of the beneficiary by providing a formal account of the loan, which can be crucial in the event of disputes or foreclosures. The beneficiary relies on this statement to ascertain that they can enforce the loan terms and track repayments accurately. In this way, a broker's loan statement is essential for ensuring transparency and security in the lending process for the beneficiary.

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