Agency Relationships and Disclosures Practice Question

Question

An escrow officer requests clarification from the broker involving visual inspection disclosure. Which response best protects the client and keeps the transaction compliant? (Item 150)

Answer choices

  1. A. It makes oral promises enforceable in every real estate transaction.
  2. B. Understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales.
  3. C. It is optional whenever both parties verbally agree to proceed.
  4. D. It allows a salesperson to act independently of the responsible broker.

Correct Answer

B. Understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales.

Explanation

The correct answer is B because visual inspection disclosure requires candidates to understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales. 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: visual inspection disclosure

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