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Practice Of Real Estate DisclosuresDre_regulationsHARD

Under the California Business and Professions Code, which of the following licensee actions is LEAST likely to constitute grounds for DRE disciplinary action?

Correct Answer

D) Recommending that a client consult an attorney before signing a complex commercial lease

Recommending that a client seek legal counsel is not a violation of the Business and Professions Code — it is consistent with a licensee's duty to act in the client's best interest. The DRE encourages licensees to refer clients to qualified professionals when issues exceed the licensee's expertise.

Answer Options
A
Failing to disclose a personal financial interest in a property the licensee is selling on behalf of a client
B
Depositing a buyer's earnest money into the broker's general operating account
C
Referring a client to a home inspector without disclosing that the licensee receives a referral fee from that inspector
D
Recommending that a client consult an attorney before signing a complex commercial lease

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Related Topics & Key Terms

Key Terms:

DREdisciplinary_actiongroundsBP_Code_10176legal_counsel

Related Concepts

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