Fair Housing, Practice, and Disclosures Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Indiana Real Estate Broker Exam involving material facts and state agency and disclosure practice. Which response best applies the rule? (Item 43)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Indiana exam practice.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Indiana exam practice.
Explanation
The correct answer is C because material facts requires candidates to disclose known facts affecting value, desirability, or party decision-making. 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: material facts