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 material facts and provisional broker supervision. Which statement is the best answer? (Item 27)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits North Carolina exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because material facts requires candidates to disclose known facts affecting value, desirability, or party decision-making. 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: material facts