Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the Indiana Real Estate Broker Exam involving environmental hazards and broker affiliation and supervision. Which answer best reduces risk? (Item 28)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Recognize issues such as mold, asbestos, radon, contamination, flood, or fire risk in a way that fits Indiana exam practice.
Correct Answer
D. Recognize issues such as mold, asbestos, radon, contamination, flood, or fire risk in a way that fits Indiana exam practice.
Explanation
The correct answer is D because environmental hazards requires candidates to recognize issues such as mold, asbestos, radon, contamination, flood, or fire risk. 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: hard
- Domain: Fair Housing, Practice, and Disclosures
- Objective: environmental hazards