Agency Relationships and Disclosures Practice Question
Question
An investor is comparing two properties involving buyer agency. Which statement is the most accurate exam answer? (Item 147)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. It can be ignored if the transaction is expected to close quickly.
- C. Identify that a buyer’s broker owes fiduciary duties to the buyer-client.
- D. It requires the licensee to favor the other party over the licensee’s own client.
Correct Answer
C. Identify that a buyer’s broker owes fiduciary duties to the buyer-client.
Explanation
The correct answer is C because buyer agency requires candidates to identify that a buyer’s broker owes fiduciary duties to the buyer-client. 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: buyer agency