Fair Housing, Practice, and Disclosures Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the North Carolina Real Estate Broker Exam involving unauthorized legal advice and material facts and due diligence practice. What should the licensee understand? (Item 48)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits North Carolina exam practice.
Correct Answer
D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits North Carolina exam practice.
Explanation
The correct answer is D because unauthorized legal advice requires candidates to avoid drafting legal rights or giving legal opinions beyond license authority. 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: hard
- Domain: Fair Housing, Practice, and Disclosures
- Objective: unauthorized legal advice