California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

Under what condition can a Realtor accept compensation from more than one party in a transaction?

Never
Only with a lawyer's approval
Without informing any party
By disclosing it to all parties and obtaining informed consent of his client

The correct answer is: By disclosing it to all parties and obtaining informed consent of his client

The correct answer is that a Realtor can accept compensation from more than one party by disclosing it to all parties involved in the transaction and obtaining informed consent from his client. This practice is supported by ethical guidelines established by professional organizations and laws that govern real estate practices. In real estate transactions, transparency and ethical conduct are paramount. By disclosing the dual compensation arrangement to all parties, the Realtor ensures that everyone is aware of the potential conflict of interest. Informed consent means that the client understands the implications of the Realtor receiving compensation from multiple sources and agrees to it willingly. This protects the interests of all parties and helps maintain trust in the professional relationship. Other choices imply scenarios that either restrict the Realtor's ability to accept dual compensation or advocate for a less ethical approach by excluding transparency and consent, which are essential in real estate transactions.