Fair Housing, Practice, and Disclosures Practice Question
Question
A license applicant is reviewing a practice scenario for the Michigan Real Estate Salesperson Exam involving steering and seller disclosure practice. Which statement is the best answer? (Item 163)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Avoid guiding prospects based on protected traits or neighborhood stereotypes in a way that fits Michigan exam practice.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
C. Avoid guiding prospects based on protected traits or neighborhood stereotypes in a way that fits Michigan exam practice.
Explanation
The correct answer is C because steering requires candidates to avoid guiding prospects based on protected traits or neighborhood stereotypes. The Michigan 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: steering