California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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How many owner occupied residential property loans can a person make in a year without being subject to Regulation Z?

  1. At least 3

  2. More than 5

  3. Fewer than 6

  4. Exactly 5

The correct answer is: Fewer than 6

The correct answer indicates that a person can make fewer than 6 owner-occupied residential property loans in a year without being subject to Regulation Z, which is part of the Truth in Lending Act. Regulation Z's primary purpose is to protect consumers in credit transactions by requiring clear disclosure of key terms and costs. The threshold set by Regulation Z states that individuals who originate 5 or more loans within a calendar year may be deemed as "creditors" under the regulation. Therefore, if someone makes fewer than 6 loans, they would not fall under the regulatory requirements laid out, allowing them to operate without the obligations imposed by Regulation Z. This understanding clarifies why this answer is considered correct based on the guidelines established for consumer lending.

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