Agency Relationships and Disclosures Practice Question

Question

An escrow officer requests clarification from the broker involving natural hazard disclosure. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 112)

Answer choices

1. A. It is controlled only by local custom rather than by law, contract, or professional duty.
2. B. It is valid only when the buyer pays cash and no lender is involved.
3. C. It prevents any later disclosure, even when new facts become known.
4. D. Identify disclosures about mapped hazards such as flood, fire, seismic, or special assessment zones.

Correct Answer

D. Identify disclosures about mapped hazards such as flood, fire, seismic, or special assessment zones.

Explanation

The correct answer is D because natural hazard disclosure requires candidates to identify disclosures about mapped hazards such as flood, fire, seismic, or special assessment zones. 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: easy
• Domain: Agency Relationships and Disclosures
• Objective: natural hazard disclosure

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