Fair Housing, Practice, and Disclosures Practice Question

Question

A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving risk documentation and material facts and due diligence practice. Which statement is most accurate for exam purposes? (Item 47)

Answer choices

1. A. The requirement matters only when the buyer obtains institutional financing.
2. B. The affiliated licensee may handle the matter independently without broker responsibility.
3. C. Use written records and timely disclosure to reduce transaction disputes in a way that fits North Carolina exam practice.
4. D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.

Correct Answer

C. Use written records and timely disclosure to reduce transaction disputes in a way that fits North Carolina exam practice.

Explanation

The correct answer is C because risk documentation requires candidates to use written records and timely disclosure to reduce transaction disputes. The North Carolina 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: risk documentation

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