Agency Relationships and Disclosures Practice Question

Question

A salesperson is explaining a concept to a client involving stigmatized property. What should a California real estate licensee understand? (Item 155)

Answer choices

  1. A. It shifts all responsibility to escrow and eliminates the broker’s duties.
  2. B. It makes oral promises enforceable in every real estate transaction.
  3. C. Distinguish required material condition disclosures from generally protected stigma issues.
  4. D. It is optional whenever both parties verbally agree to proceed.

Correct Answer

C. Distinguish required material condition disclosures from generally protected stigma issues.

Explanation

The correct answer is C because stigmatized property requires candidates to distinguish required material condition disclosures from generally protected stigma issues. 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: stigmatized property

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