Fair Housing and Disclosures Practice Question

Question

A client wants to know what should be documented in writing in a New York real estate transaction involving material facts. Which answer best reduces transaction risk? (Item 285)

Answer choices

1. A. Disclose known facts that materially affect value, desirability, or the parties’ decisions.
2. B. The licensee should avoid documenting the issue to reduce the chance of later questions.
3. C. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
4. D. A verbal understanding always replaces any written requirement in a real estate transaction.

Correct Answer

A. Disclose known facts that materially affect value, desirability, or the parties’ decisions.

Explanation

The correct answer is A because material facts requires candidates to disclose known facts that materially affect value, desirability, or the parties’ decisions. 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: easy
• Domain: Fair Housing and Disclosures
• Objective: material facts

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