California Real Estate Broker Exam — All Questions

In a California residential sale of one to four units, the agent must provide the buyer and seller the statutory Disclosure Regarding Real Estate Agency Relationships (the 'AD' form). This disclosure explains:

• a.The property's exact market value
• b.Whether the agent represents the seller, the buyer, or both as a dual agent, and the duties owed✓
• c.The buyer's credit score
• d.The lender's interest rate

California's agency disclosure (the AD form) is required in residential transactions of one to four units and explains the possible agency relationships, whether the agent is the seller's agent, the buyer's agent, or a dual agent, and the duties each owes. It is about representation, not valuation, credit, or financing terms, and must be provided at the statutory times.

The California Real Estate Transfer Disclosure Statement (TDS) required in most sales of one-to-four residential units is a disclosure of:

• a.The commission split between brokers
• b.The buyer's financing terms
• c.The listing agent's license history
• d.The condition of the property and known material defects, completed primarily by the seller✓

The Transfer Disclosure Statement (TDS) requires the seller to disclose the condition of the property and known material defects, and the agents to note items observed from a reasonably competent and diligent visual inspection. It protects buyers by revealing property condition, and it cannot be waived in the transactions where it is required.

A California broker acting as a dual agent representing both buyer and seller may NOT, without written consent:

• a.Disclose to the buyer that the seller will accept less than the listing price, or to the seller that the buyer will pay more✓
• b.Present all offers to the seller
• c.Explain the AD form to both parties
• d.Recommend that each party obtain independent inspections

A California dual agent owes fiduciary duties to both parties but may not, without the party's express written consent, disclose one party's price negotiating position to the other (for example, that the seller will take less or the buyer will pay more). The dual agent may still present offers, explain the agency form, and recommend inspections. Dual agency is legal in California only with disclosure and consent.