Agency Relationships and Disclosures Practice Question
Question
A salesperson is explaining a concept to a client involving visual inspection disclosure. Which response best protects the client and keeps the transaction compliant? (Item 50)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. Understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
B. Understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales.
Explanation
The correct answer is B because visual inspection disclosure requires candidates to understand the agent’s duty to conduct and document a reasonably competent visual inspection in covered residential sales. 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: visual inspection disclosure