Agency Relationships and Disclosures Practice Question
Question
A buyer and seller disagree about a transaction term involving advertising agency status. What should a California real estate licensee understand? (Item 180)
Answer choices
- A. It is optional whenever both parties verbally agree to proceed.
- B. It allows a salesperson to act independently of the responsible broker.
- C. It shifts all responsibility to escrow and eliminates the broker’s duties.
- D. Avoid misleading statements about representation or broker affiliation.
Correct Answer
D. Avoid misleading statements about representation or broker affiliation.
Explanation
The correct answer is D because advertising agency status requires candidates to avoid misleading statements about representation or broker affiliation. 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: hard
- Domain: Agency Relationships and Disclosures
- Objective: advertising agency status