Agency Relationships and Disclosures Practice Question

Question

A license applicant is studying a California practice scenario involving agency disclosure timing. Which response best protects the client and keeps the transaction compliant? (Item 44)

Answer choices

1. A. It is valid only when the buyer pays cash and no lender is involved.
2. B. It prevents any later disclosure, even when new facts become known.
3. C. It applies only to commercial property and never to residential transactions.
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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