Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the New Jersey Real Estate Salesperson Exam involving redlining and New Jersey Real Estate Commission. Which answer best reduces risk? (Item 5)
Answer choices
- A. Recognize discriminatory lending or service denial based on area characteristics in a way that fits New Jersey exam practice.
- 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. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
A. Recognize discriminatory lending or service denial based on area characteristics in a way that fits New Jersey exam practice.
Explanation
The correct answer is A because redlining requires candidates to recognize discriminatory lending or service denial based on area characteristics. The New Jersey 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: easy
- Domain: Fair Housing, Practice, and Disclosures
- Objective: redlining