Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the Pennsylvania Real Estate Salesperson Exam involving material facts and state agreement and disclosure practice. Which response best applies the rule? (Item 43)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Pennsylvania exam practice.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Pennsylvania 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 Pennsylvania 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