Agency Relationships and Disclosures Practice Question
Question
A broker is supervising a transaction file involving imputed knowledge. What should a California real estate licensee understand? (Item 118)
Answer choices
- A. It removes the need for written disclosure if the licensee believes the client already knows.
- B. Recognize how broker and salesperson knowledge can affect disclosure duties.
- 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
B. Recognize how broker and salesperson knowledge can affect disclosure duties.
Explanation
The correct answer is B because imputed knowledge requires candidates to recognize how broker and salesperson knowledge can affect disclosure duties. 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: imputed knowledge