Agency Relationships and Disclosures Practice Question

Question

A buyer and seller disagree about a transaction term involving stigmatized property. What should a California real estate licensee understand? (Item 75)

Answer choices

1. A. It prevents any later disclosure, even when new facts become known.
2. B. It applies only to commercial property and never to residential transactions.
3. C. Distinguish required material condition disclosures from generally protected stigma issues.
4. D. It is controlled only by local custom rather than by law, contract, or professional duty.

Correct Answer

C. Distinguish required material condition disclosures from generally protected stigma issues.

Explanation

The correct answer is C because stigmatized property requires candidates to distinguish required material condition disclosures from generally protected stigma issues. 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: stigmatized property

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