AgencyIntermediateCalifornia Exam

In California, which form confirms the agency relationship at the time a purchase agreement is executed?

ATransfer Disclosure Statement, under standard California agency practice
BConfirmation of Agency Relationships (included in or attached to the purchase agreement)Correct
CNatural Hazard Disclosure Statement, as commonly applied in brokerage relationships
DSeller Property Questionnaire, consistent with typical listing agreement terms

Why Confirmation of Agency Relationships (included in or attached to the purchase agreement) Is Correct

Answer B: Confirmation of Agency Relationships (included in or attached to the purchase agreement)

California requires that the agency relationship be confirmed in writing at the time the purchase agreement is signed. This confirmation specifies who the listing agent represents and who the selling/buyer's agent represents.

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.

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