AgencyIntermediateCalifornia Exam

What must a buyer's agent disclose to their client about a property?

AOnly defects visible during a walk-through, consistent with typical listing agreement terms
BAll known material facts that might affect the buyer's decisionCorrect
COnly what the seller has disclosed, per standard fiduciary practice in the industry
DNothing unless asked by the buyer, under standard California agency practice

Why All known material facts that might affect the buyer's decision Is Correct

Answer B: All known material facts that might affect the buyer's decision

A buyer's agent has a duty of disclosure — they must reveal all known material facts that could affect the buyer's decision, including anything discovered during due diligence.

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

Agency

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

Listing Agreement

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

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

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

Related California Questions

Study This Topic

Agency Law Guide

Practice More California Real Estate Questions

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

Take the Free California Quiz →