Agency Relationships and Disclosures Practice Question
Question
A buyer and seller disagree about a transaction term involving Mello-Roos disclosure. What should a California real estate licensee understand? (Item 94)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. Identify special tax district disclosure concepts.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
B. Identify special tax district disclosure concepts.
Explanation
The correct answer is B because Mello-Roos disclosure requires candidates to identify special tax district disclosure concepts. 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: medium
- Domain: Agency Relationships and Disclosures
- Objective: Mello-Roos disclosure