Agency Relationships and Disclosures Practice Question
Question
A first-time buyer asks for exam-focused clarification involving agency termination. What should a California real estate licensee understand? (Item 77)
Answer choices
- A. Identify completion, expiration, mutual agreement, revocation, or operation of law as termination events.
- B. It prevents any later disclosure, even when new facts become known.
- C. It applies only to commercial property and never to residential transactions.
- D. It is controlled only by local custom rather than by law, contract, or professional duty.
Correct Answer
A. Identify completion, expiration, mutual agreement, revocation, or operation of law as termination events.
Explanation
The correct answer is A because agency termination requires candidates to identify completion, expiration, mutual agreement, revocation, or operation of law as termination events. 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: agency termination