Although the Function of Commercial Brokerage Is the Same as That

question 9

Multiple Choice

Although the function of commercial brokerage is the same as that of residential brokerage, the activities of commercial brokers usually differ considerably from those of residential brokers due to fundamental differences in these two markets. All of the following statements regarding commercial brokerage are true EXCEPT:

• A) Relative to residential transactions, commercial transactions tend to be larger
• B) The parties in commercial mortgage transactions are typically less knowledgeable than those in residential transactions.
• C) An important part of the commercial broker's service is to provide the prospective buyer with reports that enable him to complete due diligence for the property
• D) Commercial brokers are often required to lower their commission in order to negotiate compromises between buyers and sellers when they reach an impasse over price.

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Definitions:

Chapter 11

A provision of the United States Bankruptcy Code that permits businesses to reorganize their debts while continuing to operate.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment firms.

Chapter 11

A provision under the U.S. Bankruptcy Code that allows for business reorganization under court supervision while maintaining operations.

Chapter 7

A provision under the U.S. Bankruptcy Code allowing individuals or businesses to liquidate their assets to pay off creditors as part of a bankruptcy proceeding.