AgencyIntermediateCalifornia Exam

Under California law, the Transfer Disclosure Statement (TDS) is required for:

AAll real property transfers, consistent with typical listing agreement terms
BMost residential 1-4 unit property sales, with some exemptionsCorrect
CCommercial property only, per standard fiduciary practice in the industry
DNew construction only, under standard California agency practice

Why Most residential 1-4 unit property sales, with some exemptions Is Correct

Answer B: Most residential 1-4 unit property sales, with some exemptions

The TDS is required for most residential 1-4 unit property sales in California. Exemptions include court-ordered sales, foreclosures, sales between co-owners, and sales to or from government agencies.

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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