Agency Relationships and Disclosures Practice Question
Question
A first-time buyer asks for exam-focused clarification involving visual inspection disclosure. Which response best protects the client and keeps the transaction compliant? (Item 10)
Answer choices
- A. It applies only to commercial property and never to residential transactions.
- B. Understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- D. It is valid only when the buyer pays cash and no lender is involved.
Correct Answer
B. Understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales.
Explanation
The correct answer is B because visual inspection disclosure requires candidates to understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales. 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: visual inspection disclosure