Fair Housing, Practice, and Disclosures Practice Question
Question
A closing coordinator flags an issue before settlement for the Indiana Real Estate Broker Exam involving advertising language and state agency and disclosure practice. Which statement is most accurate for exam purposes? (Item 40)
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. Avoid preferences, limitations, or discriminatory wording in a way that fits Indiana exam practice.
Correct Answer
D. Avoid preferences, limitations, or discriminatory wording in a way that fits Indiana exam practice.
Explanation
The correct answer is D because advertising language requires candidates to avoid preferences, limitations, or discriminatory wording. 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: advertising language