Agency Relationships and Disclosures Practice Question
Question
A license applicant is studying a California practice scenario involving advertising agency status. What should a California real estate licensee understand? (Item 140)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. Avoid misleading statements about representation or broker affiliation.
Correct Answer
D. Avoid misleading statements about representation or broker affiliation.
Explanation
The correct answer is D because advertising agency status requires candidates to avoid misleading statements about representation or broker affiliation. 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: advertising agency status