Fair Housing, Practice, and Disclosures Practice Question
Question
A license applicant is reviewing a practice scenario for the Tennessee Affiliate Broker Exam involving state fair housing and agency and property condition disclosure practice. Which statement is most accurate for exam purposes? (Item 82)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize that state protections may be broader than federal minimums in a way that fits Tennessee exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
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