Agency Relationships and Disclosures Practice Question
Question
A listing agent notices a potential compliance issue involving seller agency. Which statement is the most accurate exam answer? (Item 66)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. Identify that the listing broker owes fiduciary duties to the seller-client.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
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