Agency Relationships and Disclosures Practice Question
Question
An escrow officer requests clarification from the broker involving conflicts of interest. What should a California real estate licensee understand? (Item 179)
Answer choices
- A. It is valid only when the buyer pays cash and no lender is involved.
- B. It prevents any later disclosure, even when new facts become known.
- C. Identify when financial or personal interests require disclosure.
- D. It applies only to commercial property and never to residential transactions.
Correct Answer
C. Identify when financial or personal interests require disclosure.
Explanation
The correct answer is C because conflicts of interest requires candidates to identify when financial or personal interests require disclosure. 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: hard
- Domain: Agency Relationships and Disclosures
- Objective: conflicts of interest