Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the North Carolina Real Estate Broker Exam involving material facts and North Carolina Real Estate Commission. Which statement is most accurate for exam purposes? (Item 11)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits North Carolina exam practice.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
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