What are the three steps of the agency disclosure in proper chronological order?
Audio Lesson
Duration: 3:06
Question & Answer
Review the question and all answer choices
Elect, confirm, disclose.
Option A (Elect, confirm, disclose) is incorrect because parties cannot elect an agency relationship before confirming the available options. This reverses the first two steps of the proper sequence.
Confirm, elect, disclose
Disclose, confirm, disclose.
Option C (Disclose, confirm, disclose) is incorrect because it repeats 'disclose' and fails to properly sequence the steps. The process doesn't involve two disclosures with confirmation in between.
Disclose, elect, confirm.
Option D (Disclose, elect, confirm) is incorrect because it places 'disclose' first, when in fact the agent must first confirm their licensing status and available agency options before any disclosure occurs.
Why is this correct?
Option B (Confirm, elect, disclose) correctly represents the chronological order of agency disclosure in California. The agent first confirms their licensing and agency options, then the parties elect their preferred agency relationship, and finally they confirm this election in writing.
Deep Analysis
AI-powered in-depth explanation of this concept
Agency disclosure is a fundamental concept in real estate practice that protects consumers by clarifying the relationship between agents and clients. In California, the process follows a specific sequence to ensure transparency and legal compliance. The question tests your understanding of this chronological process. First, the agent must confirm their license status and agency options available. Then, the parties elect which agency relationship they wish to establish. Finally, they must confirm this election in writing, typically through a disclosure document. This sequence ensures parties make informed decisions before formalizing the relationship. The question is straightforward but requires memorization of the proper order, which students often confuse. Understanding this process connects to broader concepts of fiduciary duties, consumer protection, and the legal framework governing real estate transactions in California.
Knowledge Background
Essential context and foundational knowledge
California's agency disclosure requirements stem from the state's commitment to consumer protection and transparency in real estate transactions. The process is governed by the California Bureau of Real Estate and outlined in the Civil Code. Agents must follow this specific sequence to ensure clients understand their options before entering into a relationship. This process became standardized to prevent misunderstandings and potential legal disputes. The written confirmation requirement creates a record of the parties' informed consent, which is crucial in dispute resolution. This framework reflects California's position as a leader in real consumer protection regulations.
C.E.D. - Confirm, Elect, Disclose
Remember the acronym C.E.D. to recall the proper order: Confirm first, then Elect the agency relationship, then Disclose in writing.
For agency sequence questions, remember that the process always begins with the agent confirming their status and options, not with disclosure.
Real World Application
How this concept applies in actual real estate practice
Imagine a potential homebuyer meets with a real estate agent at an open house. The agent must first confirm their licensing status and explain the agency options available (seller's agent, buyer's agent, dual agent, etc.). The buyer then elects which type of representation they prefer. Finally, both parties sign a written disclosure form confirming this election. If the agent were to skip the confirmation step and immediately ask the buyer to sign disclosure documents, the buyer might not fully understand their options, potentially leading to legal issues later in the transaction.
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