Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the North Carolina Real Estate Broker Exam involving lead-based paint and material facts and due diligence practice. Which response best applies the rule? (Item 41)
Answer choices
- A. Apply federal disclosure concepts for pre-1978 residential housing in a way that fits North Carolina exam practice.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
A. Apply federal disclosure concepts for pre-1978 residential housing in a way that fits North Carolina exam practice.
Explanation
The correct answer is A because lead-based paint requires candidates to apply federal disclosure concepts for pre-1978 residential housing. 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: easy
- Domain: Fair Housing, Practice, and Disclosures
- Objective: lead-based paint