Agency Relationships and Disclosures Practice Question
Question
A buyer and seller disagree about a transaction term involving transfer disclosure statement. What should a California real estate licensee understand? (Item 151)
Answer choices
- A. It is primarily a tax rule with no effect on brokerage practice.
- B. It removes the need for written disclosure if the licensee believes the client already knows.
- C. Recognize the seller disclosure form used for many California residential transfers.
- D. It can be ignored if the transaction is expected to close quickly.
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