Fair Housing, Practice, and Disclosures Practice Question
Question
A license applicant is reviewing a practice scenario for the Michigan Real Estate Salesperson Exam involving material facts and seller disclosure practice. Which response best applies the rule? (Item 123)
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. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Michigan exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Michigan 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 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: material facts