AgencyIntermediateCalifornia Exam

A listing agent who learns the seller is in financial distress must:

AKeep this information confidential from all buyersCorrect
BDisclose it to all prospective buyers immediately
CInform the buyer only if directly asked
DWithdraw from the listing

Why Keep this information confidential from all buyers Is Correct

Answer A: Keep this information confidential from all buyers

Financial distress of a seller is confidential information the listing agent owes to their principal (the seller). Disclosing it could damage the seller's negotiating position.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

People Also Study

Practice More California Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free California Quiz →