Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the South Carolina Real Estate Salesperson Exam involving redlining and agency disclosure and broker supervision. Which statement is most accurate for exam purposes? (Item 21)
Answer choices
- A. Recognize discriminatory lending or service denial based on area characteristics in a way that fits South 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. Recognize discriminatory lending or service denial based on area characteristics in a way that fits South Carolina exam practice.
Explanation
The correct answer is A because redlining requires candidates to recognize discriminatory lending or service denial based on area characteristics. The South 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: redlining