Fair Housing, Practice, and Disclosures Practice Question
Question
A seller is preparing to list a home for the Utah Real Estate Sales Agent Exam involving material facts and Utah Division of Real Estate. What should the licensee understand? (Item 59)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Utah exam practice.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
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