Agency Relationships and Disclosures Practice Question
Question
An investor is comparing two properties involving agency termination. What should a California real estate licensee understand? (Item 157)
Answer choices
- A. Identify completion, expiration, mutual agreement, revocation, or operation of law as termination events.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
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