Agency Relationships and Disclosures Practice Question

Question

A seller is reviewing documents before accepting an offer involving agency disclosure timing. Which response best protects the client and keeps the transaction compliant? (Item 144)

Answer choices

1. A. It is primarily a tax rule with no effect on brokerage practice.
2. B. It removes the need for written disclosure if the licensee believes the client already knows.
3. C. It can be ignored if the transaction is expected to close quickly.
4. D. Provide required agency relationship disclosures at the proper point in a residential transaction.

Correct Answer

D. Provide required agency relationship disclosures at the proper point in a residential transaction.

Explanation

The correct answer is D because agency disclosure timing requires candidates to provide required agency relationship disclosures at the proper point in a residential transaction. 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: agency disclosure timing

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