Fair Housing, Practice, and Disclosures Practice Question

Question

A salesperson notices a possible compliance problem for the Tennessee Affiliate Broker Exam involving environmental hazards and affiliate broker supervision. Which response best applies the rule? (Item 76)

Answer choices

  1. A. The requirement matters only when the buyer obtains institutional financing.
  2. B. The affiliated licensee may handle the matter independently without broker responsibility.
  3. C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
  4. D. Recognize issues such as mold, asbestos, radon, contamination, flood, or fire risk in a way that fits Tennessee exam practice.

Correct Answer

D. Recognize issues such as mold, asbestos, radon, contamination, flood, or fire risk in a way that fits Tennessee exam practice.

Explanation

The correct answer is D because environmental hazards requires candidates to recognize issues such as mold, asbestos, radon, contamination, flood, or fire risk. 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: hard
  • Domain: Fair Housing, Practice, and Disclosures
  • Objective: environmental hazards

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