Contracts, Transfer, and Escrow Practice Question
Question
A first-time buyer asks for exam-focused clarification involving listing agreement. Which statement best describes listing agreement? (Item 124)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- 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