Installment Contract Exclusivity
This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”
Subject distribution
- Real Property1
Example wrong choices
14958_lakeside_cottage_note · REAL_PROPERTY · Choice BNaomi's loan, because the bank knew that Naomi had an equitable vendor's lien.
Why it's attractive
The choice treats knowledge of Naomi's unpaid note as stronger than the bank's actual mortgage.
Why it's wrong
The choice treats knowledge of Naomi's unpaid note as stronger than the bank's actual mortgage.
14958_lakeside_cottage_note · REAL_PROPERTY · Choice CThe bank's loan, because Naomi could finance part of the purchase price only by using an installment land contract.
Why it's attractive
The word only overclaims the available methods of seller financing.
Why it's wrong
The word only overclaims the available methods of seller financing.
14958_lakeside_cottage_note · REAL_PROPERTY · Choice DNaomi's loan, because a promissory note to a seller has priority over a bank loan for residential property.
Why it's attractive
The stem says note, not mortgage, and the choice invents automatic priority from residential property.
Why it's wrong
The stem says note, not mortgage, and the choice invents automatic priority from residential property.
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