Fair Housing and Practice Practice Question
Question
A first-time buyer asks for exam-focused clarification involving professional ethics. Which response best protects the client and keeps the transaction compliant? (Item 104)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. It can be ignored if the transaction is expected to close quickly.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. Distinguish lawful competition and honest dealing from misleading conduct.
Correct Answer
D. Distinguish lawful competition and honest dealing from misleading conduct.
Explanation
The correct answer is D because professional ethics requires candidates to distinguish lawful competition and honest dealing from misleading conduct. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: medium
- Domain: Fair Housing and Practice
- Objective: professional ethics