Fair Housing, Practice, and Disclosures Practice Question
Question
A client asks whether a fact should be disclosed for the Pennsylvania Real Estate Salesperson Exam involving market allocation and state agreement and disclosure practice. What should the licensee understand? (Item 46)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. Avoid dividing territories, customers, or property types with competitors in a way that fits Pennsylvania exam practice.
- C. The party who complains first automatically receives the remedy requested.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
B. Avoid dividing territories, customers, or property types with competitors in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B because market allocation requires candidates to avoid dividing territories, customers, or property types with competitors. 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: market allocation