Contracts, Transfer, and Escrow Practice Question
Question
A buyer and seller disagree about a transaction term involving listing agreement. Which statement best describes listing agreement? (Item 84)
Answer choices
- A. It is controlled only by local custom rather than by law, contract, or professional duty.
- B. It is valid only when the buyer pays cash and no lender is involved.
- C. It prevents any later disclosure, even when new facts become known.
- D. Recognize broker employment agreement terms and compensation concepts.
Correct Answer
D. Recognize broker employment agreement terms and compensation concepts.
Explanation
The correct answer is D because listing agreement requires candidates to recognize broker employment agreement terms and compensation concepts. 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: Contracts, Transfer, and Escrow
- Objective: listing agreement