What term describes a real estate financial transaction regulated by federal financial institutions?

Study for the Florida Real Estate License Renewal Test. Prepare with detailed scenarios and multiple choice questions offering explanations. Boost your confidence and ace the exam!

The term that describes a real estate financial transaction regulated by federal financial institutions is "federally related transaction." This designation is specifically applied to transactions that involve loans secured by real estate, where at least one of the parties is a federally regulated lending institution.

Such transactions are governed by federal laws to promote consistency and fairness in lending practices across the country. This regulation ensures that lending institutions uphold certain standards when it comes to appraisals, underwriting processes, and disclosures, thereby protecting both consumers and lenders in the real estate market.

The other terms presented do not accurately describe this concept. "Corporate transaction" refers to business dealings that involve corporations and their assets but does not specifically pertain to real estate regulations. "Real estate appraisal" is the process of evaluating the value of property but does not encompass the broader financial transaction aspects. "Investment assessment" typically pertains to evaluating the potential return on investment of a property but is not specifically tied to federal regulation of financial transactions.

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