Fair Housing, Practice, and Disclosures Practice Question
Question
An agent compares two similar exam concepts for the Indiana Real Estate Broker Exam involving seller property disclosure and state agency and disclosure practice. What should the licensee understand? (Item 42)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Recognize disclosure of known material property conditions in a way that fits Indiana exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Recognize disclosure of known material property conditions in a way that fits Indiana exam practice.
Explanation
The correct answer is B because seller property disclosure requires candidates to recognize disclosure of known material property conditions. The Indiana 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: seller property disclosure