New Jersey Real Estate Practice Exam Practice Question
A purchase money note need NOT contain the
Correct Answer: C
Rationale: A purchase money note must include essential elements to ensure clarity and enforceability. The rate of interest (A), time and method of payment (B), and principal amount of the loan (D) are all critical components that define the terms of the loan and protect both parties. In contrast, the loan-to-value ratio (C) is not a required element of the note itself; it is more relevant to assessing the risk of the loan rather than outlining the terms. Thus, while important in the context of lending, it is not necessary for the note's validity.
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