Fair Housing and Disclosures Practice Question

Question

A broker reviews a transaction file with a new salesperson in a New York real estate transaction involving lead-based paint. What should the licensee understand? (Item 272)

Answer choices

1. A. The rule applies only to commercial property and never to residential property.
2. B. The broker may mix client funds with business funds if the amount is small and later reconciled.
3. C. The issue can be ignored if both parties want the transaction to close quickly.
4. D. Apply federal disclosure duties for pre-1978 residential property.

Correct Answer

D. Apply federal disclosure duties for pre-1978 residential property.

Explanation

The correct answer is D because lead-based paint requires candidates to apply federal disclosure duties for pre-1978 residential property. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.

Question details

• Difficulty: hard
• Domain: Fair Housing and Disclosures
• Objective: lead-based paint

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