Property Ownership and Land Use Practice Question

Question

A listing agent notices a potential compliance issue involving escheat. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 95)

Answer choices

1. A. It can be ignored if the transaction is expected to close quickly.
2. B. It requires the licensee to favor the other party over the licensee’s own client.
3. C. Identify state acquisition when an owner dies without heirs or a valid will.
4. D. It is primarily a tax rule with no effect on brokerage practice.

Correct Answer

C. Identify state acquisition when an owner dies without heirs or a valid will.

Explanation

The correct answer is C because escheat requires candidates to identify state acquisition when an owner dies without heirs or a valid will. 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: escheat

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