Agency Relationships and Disclosures Practice Question
Question
An escrow officer requests clarification from the broker involving seller agency. Which statement is the most accurate exam answer? (Item 26)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. Identify that the listing broker owes fiduciary duties to the seller-client.
- C. It can be ignored if the transaction is expected to close quickly.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
B. Identify that the listing broker owes fiduciary duties to the seller-client.
Explanation
The correct answer is B because seller agency requires candidates to identify that the listing broker owes fiduciary duties to the seller-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: seller agency