Principles, Property, and Land Use Practice Question

Question

A salesperson notices a possible compliance problem for the Indiana Real Estate Broker Exam involving restrictive covenants and broker affiliation and supervision. Which answer best reduces risk? (Item 88)

Answer choices

1. A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
2. B. The client’s preference eliminates the need to disclose known material facts.
3. C. The party who complains first automatically receives the remedy requested.
4. D. Recognize private deed or association limits on property use in a way that fits Indiana exam practice.

Correct Answer

D. Recognize private deed or association limits on property use in a way that fits Indiana exam practice.

Explanation

The correct answer is D because restrictive covenants requires candidates to recognize private deed or association limits on property use. 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: Principles, Property, and Land Use
• Objective: restrictive covenants

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