Agency Relationships and Disclosures Practice Question
Question
An escrow officer requests clarification from the broker involving advertising agency status. What should a California real estate licensee understand? (Item 160)
Answer choices
- A. It is controlled only by local custom rather than by law, contract, or professional duty.
- B. It is valid only when the buyer pays cash and no lender is involved.
- C. It prevents any later disclosure, even when new facts become known.
- 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