Agency Relationships and Disclosures Practice Question
Question
A first-time buyer asks for exam-focused clarification involving buyer agency. Which statement is the most accurate exam answer? (Item 67)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. It makes oral promises enforceable in every real estate transaction.
- C. Identify that a buyer’s broker owes fiduciary duties to the buyer-client.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
C. Identify that a buyer’s broker owes fiduciary duties to the buyer-client.
Explanation
The correct answer is C because buyer agency requires candidates to identify that a buyer’s broker owes fiduciary duties to the buyer-client. 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: buyer agency