Property Ownership and Land Use Practice Question

Question

A seller is reviewing documents before accepting an offer involving property taxation. Which statement best describes property taxation? (Item 154)

Answer choices

1. A. It removes the need for written disclosure if the licensee believes the client already knows.
2. B. Recognize property tax as an exercise of the government power to tax.
3. C. It can be ignored if the transaction is expected to close quickly.
4. D. It requires the licensee to favor the other party over the licensee’s own client.

Correct Answer

B. Recognize property tax as an exercise of the government power to tax.

Explanation

The correct answer is B because property taxation requires candidates to recognize property tax as an exercise of the government power to tax. 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: Property Ownership and Land Use
• Objective: property taxation

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