Fair Housing and Practice Practice Question

Question

An escrow officer requests clarification from the broker involving redlining. Which statement best describes redlining? (Item 7)

Answer choices

  1. A. It allows a salesperson to act independently of the responsible broker.
  2. B. It shifts all responsibility to escrow and eliminates the broker’s duties.
  3. C. Recognize discriminatory lending or service denial by geography.
  4. D. It makes oral promises enforceable in every real estate transaction.

Correct Answer

C. Recognize discriminatory lending or service denial by geography.

Explanation

The correct answer is C because redlining requires candidates to recognize discriminatory lending or service denial by geography. 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: redlining

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