California Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 740

When two people cosign a note requiring joint and several liability, what does it mean?

Both cosigners share equal responsibility for payments

Each cosigner can be required to pay the entire loan amount if the other defaults

When two people cosign a note requiring joint and several liability, it means that both cosigners are equally responsible for repaying the loan. This includes the full amount, not just half, if one of the cosigners defaults. This is different from option A, where the responsibility is shared equally between the cosigners. Option C is incorrect because joint and several liability means that the cosigners can be sued individually or together. Lastly, option D is incorrect because it implies that each cosigner only pays half of the loan amount, when in reality they are both responsible for the full amount.

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The cosigners can only be sued together, not individually

Each cosigner pays half of the loan amount

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