Agency Relationships and Disclosures Practice Question
Question
A property manager is preparing a written response involving buyer agency. Which statement is the most accurate exam answer? (Item 167)
Answer choices
- A. It prevents any later disclosure, even when new facts become known.
- B. It applies only to commercial property and never to residential transactions.
- C. Identify that a buyer’s broker owes fiduciary duties to the buyer-client.
- D. It is controlled only by local custom rather than by law, contract, or professional duty.
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