AgencyIntermediateCalifornia Exam

A real estate agent's duty of 'disclosure' includes which of the following?

ADisclosing the seller's social security number to the buyer, as commonly applied in brokerage relationships

BDisclosing all known material facts that could affect the property's value or desirabilityCorrect

CDisclosing the buyer's financial information to the seller, consistent with typical listing agreement terms

DDisclosing only information the client asks about, per standard fiduciary practice in the industry

Why Disclosing all known material facts that could affect the property's value or desirability Is Correct

Answer B: Disclosing all known material facts that could affect the property's value or desirability

The duty of disclosure requires an agent to reveal all known material facts that could affect the property's value or desirability, regardless of whether the client asks. This duty runs to the client and, in many cases, to third parties.

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.

Key Agency Terms in This Question

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

State-Specific Concepts

Disclosure Requirements

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Agency Law Guide

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