Fair Housing, Practice, and Disclosures Practice Question

Question

A salesperson notices a possible compliance problem for the New Jersey Real Estate Salesperson Exam involving steering and New Jersey disclosure and consumer protection practice. What should the licensee understand? (Item 35)

Answer choices

1. A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
2. B. The requirement matters only when the buyer obtains institutional financing.
3. C. Avoid guiding prospects based on protected traits or neighborhood stereotypes in a way that fits New Jersey exam practice.
4. D. The affiliated licensee may handle the matter independently without broker responsibility.

Correct Answer

C. Avoid guiding prospects based on protected traits or neighborhood stereotypes in a way that fits New Jersey exam practice.

Explanation

The correct answer is C because steering requires candidates to avoid guiding prospects based on protected traits or neighborhood stereotypes. 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: medium
• Domain: Fair Housing, Practice, and Disclosures
• Objective: steering

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