Agency Relationships and Disclosures Practice Question
Question
A seller is reviewing documents before accepting an offer involving material facts. Which response best protects the client and keeps the transaction compliant? (Item 49)
Answer choices
- A. Recognize facts that could affect value, desirability, or a party’s decision.
- B. It removes the need for written disclosure if the licensee believes the client already knows.
- C. It can be ignored if the transaction is expected to close quickly.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
A. Recognize facts that could affect value, desirability, or a party’s decision.
Explanation
The correct answer is A because material facts requires candidates to recognize facts that could affect value, desirability, or a party’s decision. 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: material facts