Agency Relationships and Disclosures Practice Question
Question
An investor is comparing two properties involving material facts. Which response best protects the client and keeps the transaction compliant? (Item 109)
Answer choices
- A. Recognize facts that could affect value, desirability, or a party’s decision.
- B. It removes the need for written disclosure if the licensee believes the client already knows.
- C. It can be ignored if the transaction is expected to close quickly.
- D. It requires the licensee to favor the other party over the licensee’s own client.
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