Agency Relationships and Disclosures Practice Question
Question
A listing agent notices a potential compliance issue involving dual agency consent. Which statement is the most accurate exam answer? (Item 85)
Answer choices
- A. Recognize that dual agency requires informed consent from both parties.
- 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. It applies only to commercial property and never to residential transactions.
Correct Answer
A. Recognize that dual agency requires informed consent from both parties.
Explanation
The correct answer is A because dual agency consent requires candidates to recognize that dual agency requires informed consent from both parties. 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: dual agency consent