Agency Relationships and Disclosures Practice Question

Question

A listing agent notices a potential compliance issue involving transfer disclosure statement. What should a California real estate licensee understand? (Item 171)

Answer choices

1. A. It is valid only when the buyer pays cash and no lender is involved.
2. B. It prevents any later disclosure, even when new facts become known.
3. C. Recognize the seller disclosure form used for many California residential transfers.
4. D. It applies only to commercial property and never to residential transactions.

Correct Answer

C. Recognize the seller disclosure form used for many California residential transfers.

Explanation

The correct answer is C because transfer disclosure statement requires candidates to recognize the seller disclosure form used for many California residential transfers. 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: easy
• Domain: Agency Relationships and Disclosures
• Objective: transfer disclosure statement

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