Agency Relationships and Disclosures Practice Question
Question
A salesperson is explaining a concept to a client involving Mello-Roos disclosure. What should a California real estate licensee understand? (Item 174)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. Identify special tax district disclosure concepts.
- C. It can be ignored if the transaction is expected to close quickly.
- D. It requires the licensee to favor the other party over the licensee’s own client.
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