Practice and Disclosures Practice Question

Question

A broker reviews a transaction file with a new salesperson in a Nevada real estate transaction involving common-interest communities. Which answer best reduces transaction risk? (Item 292)

Answer choices

1. A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
2. B. The requirement matters only if the buyer uses lender financing.
3. C. The salesperson may handle the matter independently without broker involvement when compensation is expected.
4. D. Recognize association documents, assessments, and resale disclosure concerns.

Correct Answer

D. Recognize association documents, assessments, and resale disclosure concerns.

Explanation

The correct answer is D because common-interest communities requires candidates to recognize association documents, assessments, and resale disclosure concerns. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Nevada exam practice.

Question details

• Difficulty: hard
• Domain: Practice and Disclosures
• Objective: common-interest communities

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