Agency Relationships and Disclosures Practice Question
Question
An investor is comparing two properties involving fiduciary duty of disclosure. What should a California real estate licensee understand? (Item 42)
Answer choices
- A. It makes oral promises enforceable in every real estate transaction.
- B. Disclose material facts known to the agent that affect the client’s decision.
- C. It is optional whenever both parties verbally agree to proceed.
- D. It allows a salesperson to act independently of the responsible broker.
Correct Answer
B. Disclose material facts known to the agent that affect the client’s decision.
Explanation
The correct answer is B because fiduciary duty of disclosure requires candidates to disclose material facts known to the agent that affect the client’s decision. 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: easy
- Domain: Agency Relationships and Disclosures
- Objective: fiduciary duty of disclosure