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Laws Of Agency Fiduciary DutiesAgency_types_and_creationHARD

A California seller lists their home with Broker A. A buyer's agent from Broker B brings an offer. The buyer's agent verbally promises the seller better terms if the seller switches listing brokers. Under California law, the buyer's agent's conduct creates what legal issue?

Correct Answer

B) Tortious interference with the existing listing agreement between the seller and Broker A

Under California law, a buyer's agent who attempts to induce a seller to break an existing listing agreement by promising better terms may be liable for tortious interference with a contractual relationship. This is both a civil tort and potentially a violation of the agent's ethical obligations under the DRE regulations.

Answer Options
A
No issue, because agents can solicit listings from any seller
B
Tortious interference with the existing listing agreement between the seller and Broker A
C
A valid agency by estoppel between the buyer's agent and the seller
D
An automatic dual agency that requires only verbal consent

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Related Topics & Key Terms

Key Terms:

tortious_interferencelisting_agreementimproper_solicitationethics
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