Agency Relationships and Disclosures Practice Question
Question
A license applicant is studying a California practice scenario involving conflicts of interest. What should a California real estate licensee understand? (Item 159)
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. Identify when financial or personal interests require disclosure.
- D. It can be ignored if the transaction is expected to close quickly.
Correct Answer
C. Identify when financial or personal interests require disclosure.
Explanation
The correct answer is C because conflicts of interest requires candidates to identify when financial or personal interests require disclosure. 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: conflicts of interest