California Real Estate Salesperson Exam Practice - Quesiton 33

Question

In a real estate transaction, who is not responsible for agency disclosure?

Selections

A. Principal

B. Listing Broker

C. Selling Broker

D. Cooperating Broker

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Answer: A

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5 Keys Summary

• The Principal (the client, such as the buyer or seller) is the party who is not responsible for creating or presenting the agency disclosure.

• The responsibility for providing the agency disclosure rests primarily with the licensed real estate agents and their employing brokers.

• This responsibility applies to the Listing Broker (seller's agent), the Selling Broker (buyer's agent), and any Cooperating Brokers involved in the transaction.

• The Principal is the client to whom the disclosure is made, and while they must review and sign the form to acknowledge the relationship, they are the recipient, not the provider.

• Agency disclosure is required by statute in California to clarify the responsibilities and duties owed by the agent to the principal and third parties in a real estate transaction.

Explanations

In a real estate transaction, the primary responsibility for providing agency

disclosure rests with the licensed real estate agents and their employing brokers. This includes

the listing broker (representing the seller), the selling broker (representing the buyer, also known

as the buyer's agent), and any cooperating brokers involved. The principal (either the buyer or

the seller) is the client to whom the disclosure is made. While principals are required to review

and sign the agency disclosure form to acknowledge the relationship, they are not the ones

responsible for creating or presenting the disclosure.

Concepts Definitions

• Agency Disclosure: A written statement, often on a form approved by the Real Estate

Commissioner, that explains the duties of various types of real estate agents (seller's

agent, buyer's agent, and dual agent) to all parties in a transaction. Its purpose is to clarify

the agency relationships.

• Principal: The client or customer (buyer, seller, landlord, or tenant) who appoints an

agent to represent them in real estate dealings. The agent owes fiduciary duties to their

principal.

• Listing Broker: The real estate broker who has an employment contract (listing

agreement) with a property seller to market and sell their property. They are responsible

for providing agency disclosure to their seller-principal.

• Selling Broker / Buyer's Agent: The broker who represents the buyer in a transaction. In

real estate terminology, a buyer's agent is often referred to as a "selling agent". They are

responsible for providing agency disclosure to their buyer-principal.

• Cooperating Broker: A broker who works with the listing broker, typically representing

the buyer, and often a member of a multiple listing service (MLS). As a buyer's

representative, they would be c