License Law and DRE Regulation Practice Question
Question
A property manager is preparing a written response involving DRE authority. Which statement is the most accurate exam answer? (Item 61)
Answer choices
- A. Recognize the California Department of Real Estate role in licensing and discipline.
- B. It applies only to commercial property and never to residential transactions.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- D. It is valid only when the buyer pays cash and no lender is involved.
Correct Answer
A. Recognize the California Department of Real Estate role in licensing and discipline.
Explanation
The correct answer is A 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: easy
- Domain: License Law and DRE Regulation
- Objective: DRE authority