Agency Relationships and Disclosures Practice Question
Question
A seller is reviewing documents before accepting an offer involving seller agency. Which statement is the most accurate exam answer? (Item 106)
Answer choices
- A. It prevents any later disclosure, even when new facts become known.
- B. Identify that the listing broker owes fiduciary duties to the seller-client.
- C. It applies only to commercial property and never to residential transactions.
- D. It is controlled only by local custom rather than by law, contract, or professional duty.
Correct Answer
B. Identify that the listing broker owes fiduciary duties to the seller-client.
Explanation
The correct answer is B because seller agency requires candidates to identify that the listing broker owes fiduciary duties to the seller-client. 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: seller agency