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 lead-based paint and North Carolina Real Estate Commission. What should the licensee understand? (Item 57)
Answer choices
- A. Apply federal disclosure concepts for pre-1978 residential housing in a way that fits North Carolina exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
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