Which of the following methods is NOT a common way to finance real estate?

Study for the IAAO Assessment Administration Specialist (AAS) exam. Engage with flashcards and multiple choice questions, each offering hints and detailed explanations. Prepare thoroughly for your certification!

Financing real estate typically involves methods that are directly established to secure funds for property acquisition or development. The common financing methods include mortgages, where a loan is secured against the property, and cash transactions, where the full amount is paid upfront without borrowing. Trust deeds serve as an alternative to mortgages, involving a third party to hold the title until the loan is repaid.

Stock options, on the other hand, are financial instruments linked to the ownership of shares in a corporation and do not directly relate to real estate financing. They are investment vehicles often associated with employee compensation and corporate finance rather than means to finance the purchase of real property. As a result, stock options do not serve as a recognized method for financing real estate transactions, making them the correct choice in this context.

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