Fair Housing, Practice, and Disclosures Practice Question
Question
A salesperson notices a possible compliance problem for the Utah Real Estate Sales Agent Exam involving material facts and state forms and disclosure awareness. Which statement is most accurate for exam purposes? (Item 91)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Utah exam practice.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Utah exam practice.
Explanation
The correct answer is C because material facts requires candidates to disclose known facts affecting value, desirability, or party decision-making. The Utah 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: material facts