Agency Relationships and Disclosures Practice Question
Question
A first-time buyer asks for exam-focused clarification involving material facts. Which response best protects the client and keeps the transaction compliant? (Item 29)
Answer choices
- A. Recognize facts that could affect value, desirability, or a party’s decision.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
A. Recognize facts that could affect value, desirability, or a party’s decision.
Explanation
The correct answer is A because material facts requires candidates to recognize facts that could affect value, desirability, or a party’s decision. 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: material facts