Which of the Following Statements Is Not True About a Mortgagee's

question 45

Multiple Choice

Which of the following statements is not true about a mortgagee's duty of good faith in relation to their power of sale?

• A)Mortgagees should take expert advice regarding the sale method and any reserve price.
• B)Mortgagees must sell a mortgagee's property by auction to ensure there was a truly independent bargain.
• C)Mortgagees who sell the property to an associate or corporation to themselves must prove the sale was in good faith and an independent bargain.
• D)Mortgagees cannot sell the mortgagor's property to themselves.

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Definitions:

Express Warranties

Explicit guarantees provided by a seller to a buyer regarding the quality, performance, or specifications of a product or service.

Implied Warranties

Legal assurances that are not explicitly stated but are assumed in the sale of goods, suggesting they will function as expected.

Transaction

A business deal or action, such as buying or selling, between two or more parties.

Warranty

A warranty is a guarantee provided by a seller to a buyer, promising to repair or replace a product if it fails within a certain period after purchase.