Under California law, a real estate licensee acting as an agent must provide the Agency Disclosure form to all parties:
Why As soon as practicable before the purchase agreement is signed Is Correct
Answer B: As soon as practicable before the purchase agreement is signed
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
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
People Also Study
Related California Questions
- The California Agency Disclosure law (Civil Code §2079) requires an agent to provide the Agency Disclosure form to buyers and sellers at what point in the transaction?Agency
- In California, what is the maximum number of days a buyer's agent must provide the buyer with the Agency Disclosure form?Agency
- Under the Agency Disclosure requirements of California Civil Code Section 2079, a listing agent must provide the agency disclosure form to a seller:DRE & Licensing
- When must a California real estate agent provide the 'Disclosure Regarding Real Estate Agency Relationships' form?Agency
- In California, which form confirms the agency relationship at the time a purchase agreement is executed?Agency
- What is liquidated damages in a California residential purchase agreement?Contracts
- A liquidated damages clause in a California residential purchase agreement limits the seller's damages, if the buyer defaults, to:Contracts
- In a California standard residential purchase agreement, when does an offer become a binding contract?Contracts
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →