License Law and DRE Regulation Practice Question
Question
A seller is reviewing documents before accepting an offer involving DRE authority. Which statement is the most accurate exam answer? (Item 76)
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 the California Department of Real Estate role in licensing and discipline.
Correct Answer
D. Recognize the California Department of Real Estate role in licensing and discipline.
Explanation
The correct answer is D because DRE authority requires candidates to recognize the California Department of Real Estate role in licensing and discipline. 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: License Law and DRE Regulation
- Objective: DRE authority