Agency Relationships and Disclosures Practice Question
Question
A property manager is preparing a written response involving imputed knowledge. What should a California real estate licensee understand? (Item 158)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. Recognize how broker and salesperson knowledge can affect disclosure duties.
- C. It makes oral promises enforceable in every real estate transaction.
- D. It is optional whenever both parties verbally agree to proceed.
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