California Real Estate Practice Exam

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Prepare effectively for the California Real Estate Exam with comprehensive quizzes, flashcards, and detailed explanations. Enhance your knowledge of real estate principles, laws, and regulations essential for passing the exam.

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What act was created to protect homeowners from losing their homes as a result of an installment purchase of goods or services?

The Unruh Act
The Garn-St. Germain Act
The Dodd-Frank Act
The Truth in Lending Act

The correct answer is: The Unruh Act

The Unruh Act was created to protect homeowners from losing their homes as a result of installment purchases of goods or services, such as financing a home improvement project or purchasing furniture. The other options are incorrect because - B: The Garn-St. Germain Act deals primarily with the regulation of federally-chartered savings and loan associations, and does not directly address homeownership protection. - C: The Dodd-Frank Act was primarily created to reform the financial industry and prevent another financial crisis, and also does not directly address homeownership protection. - D: The Truth in Lending Act requires lenders to provide borrowers with specific information about the terms and costs of loans, but it does not specifically address protection against losing one's home.