Fair Housing, Practice, and Disclosures Practice Question
Question
A supervising broker is reviewing a transaction file for the Indiana Real Estate Broker Exam involving material facts and broker affiliation and supervision. Which statement is the best answer? (Item 27)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Indiana exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
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