Fair Housing, Practice, and Disclosures Practice Question
Question
A seller is preparing to list a home for the Illinois Real Estate Broker Exam involving steering and state escrow and advertising compliance. What should the licensee understand? (Item 35)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. Avoid guiding prospects based on protected traits or neighborhood stereotypes in a way that fits Illinois exam practice.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
C. Avoid guiding prospects based on protected traits or neighborhood stereotypes in a way that fits Illinois exam practice.
Explanation
The correct answer is C because steering requires candidates to avoid guiding prospects based on protected traits or neighborhood stereotypes. The Illinois reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Fair Housing, Practice, and Disclosures
- Objective: steering