Fair Housing, Practice, and Disclosures Practice Question
Question
A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving state fair housing and Tennessee Real Estate Commission. Which statement is the best answer? (Item 98)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize that state protections may be broader than federal minimums in a way that fits Tennessee exam practice.
- 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
B. Recognize that state protections may be broader than federal minimums in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because state fair housing requires candidates to recognize that state protections may be broader than federal minimums. The Tennessee 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: state fair housing