Agency Relationships and Disclosures Practice Question
Question
A listing agent notices a potential compliance issue involving natural hazard disclosure. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 152)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. Identify disclosures about mapped hazards such as flood, fire, seismic, or special assessment zones.
Correct Answer
D. Identify disclosures about mapped hazards such as flood, fire, seismic, or special assessment zones.
Explanation
The correct answer is D because natural hazard disclosure requires candidates to identify disclosures about mapped hazards such as flood, fire, seismic, or special assessment zones. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: easy
- Domain: Agency Relationships and Disclosures
- Objective: natural hazard disclosure