Agency Relationships and Disclosures Practice Question
Question
A salesperson is explaining a concept to a client involving conflicts of interest. What should a California real estate licensee understand? (Item 79)
Answer choices
- A. It allows a salesperson to act independently of the responsible broker.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. Identify when financial or personal interests require disclosure.
- D. It makes oral promises enforceable in every real estate transaction.
Correct Answer
C. Identify when financial or personal interests require disclosure.
Explanation
The correct answer is C because conflicts of interest requires candidates to identify when financial or personal interests require disclosure. 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: conflicts of interest