Fair Housing, Practice, and Disclosures Practice Question
Question
A closing coordinator flags an issue before settlement for the New Jersey Real Estate Salesperson Exam involving redlining and New Jersey disclosure and consumer protection practice. Which statement is the best answer? (Item 37)
Answer choices
- A. Recognize discriminatory lending or service denial based on area characteristics in a way that fits New Jersey exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
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