Fair Housing, Practice, and Disclosures Practice Question

Question

A salesperson notices a possible compliance problem for the Utah Real Estate Sales Agent Exam involving risk documentation and sales agent brokerage affiliation. Which answer best reduces risk? (Item 31)

Answer choices

1. A. Client funds may be mixed with business funds if the broker reconciles the account later.
2. B. The issue can be ignored if the parties want to close quickly.
3. C. Use written records and timely disclosure to reduce transaction disputes in a way that fits Utah exam practice.
4. D. The rule applies only to commercial transactions and never to residential transactions.

Correct Answer

C. Use written records and timely disclosure to reduce transaction disputes in a way that fits Utah exam practice.

Explanation

The correct answer is C because risk documentation requires candidates to use written records and timely disclosure to reduce transaction disputes. 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: risk documentation

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