Agency Relationships and Disclosures Practice Question
Question
A broker is supervising a transaction file involving stigmatized property. What should a California real estate licensee understand? (Item 175)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. It can be ignored if the transaction is expected to close quickly.
- C. Distinguish required material condition disclosures from generally protected stigma issues.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
C. Distinguish required material condition disclosures from generally protected stigma issues.
Explanation
The correct answer is C because stigmatized property requires candidates to distinguish required material condition disclosures from generally protected stigma issues. 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: stigmatized property