Agency Relationships and Disclosures Practice Question

Question

An investor is comparing two properties involving ministerial acts. Which statement is the most accurate exam answer? (Item 128)

Answer choices

  1. A. It is primarily a tax rule with no effect on brokerage practice.
  2. B. It removes the need for written disclosure if the licensee believes the client already knows.
  3. C. It can be ignored if the transaction is expected to close quickly.
  4. D. Distinguish administrative assistance from creating an agency relationship.

Correct Answer

D. Distinguish administrative assistance from creating an agency relationship.

Explanation

The correct answer is D because ministerial acts requires candidates to distinguish administrative assistance from creating an agency relationship. 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: ministerial acts

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