Agency Relationships and Disclosures Practice Question
Question
A buyer and seller disagree about a transaction term involving imputed knowledge. What should a California real estate licensee understand? (Item 18)
Answer choices
- A. It prevents any later disclosure, even when new facts become known.
- B. Recognize how broker and salesperson knowledge can affect disclosure duties.
- C. It applies only to commercial property and never to residential transactions.
- D. It is controlled only by local custom rather than by law, contract, or professional duty.
Correct Answer
B. Recognize how broker and salesperson knowledge can affect disclosure duties.
Explanation
The correct answer is B because imputed knowledge requires candidates to recognize how broker and salesperson knowledge can affect disclosure duties. 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: imputed knowledge