Agency Relationships and Disclosures Practice Question
Question
A salesperson is explaining a concept to a client involving agency termination. What should a California real estate licensee understand? (Item 117)
Answer choices
- A. Identify completion, expiration, mutual agreement, revocation, or operation of law as termination events.
- 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. Identify completion, expiration, mutual agreement, revocation, or operation of law as termination events.
Explanation
The correct answer is A because agency termination requires candidates to identify completion, expiration, mutual agreement, revocation, or operation of law as termination events. 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 termination