A listing agent, without the seller's consent, tells the buyer during negotiations that the seller will accept $50,000 below the listed price. Which fiduciary duty has the agent breached?
Correct Answer
D) The duty of loyalty and confidentiality
California Civil Code §2079.21 prohibits a listing agent from disclosing to a buyer the seller's willingness to accept less than the listing price, or any other confidential information, without the seller's express written consent. This obligation flows directly from the fiduciary duty of loyalty and confidentiality, which requires the agent to protect the principal's negotiating position and interests above all others. Revealing the seller's bottom-line price without authorization is a textbook breach of this duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
More Laws Of Agency Fiduciary Duties Questions
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
What are the three steps of the agency disclosure in proper chronological order?
An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
- → When showing a listed residential property of one to four dwelling units to potential buyers, the listing broker is required to disclose:
- → Broker fees deposited with the broker before they are earned are called:
- → A real estate broker is subject to disciplinary action from the Department of Real Estate (DRE) if they:
- → The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
- → When a broker wants to store documents electronically, the storage method may not allow the final documents to be altered. What method of electronic document storage is required by the Department of Real Estate (DRE)?
- → A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
- → A seller’s broker needs to disclose:
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → If a 16-year-old emancipated minor wishes to sell real property, their broker may:
- → A broker who fails to promptly disclose their dual agency status is subject to:
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Under California Civil Code §2079.13, which party does the 'selling agent' represent in a residential real estate transaction?
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Under California Civil Code §2079.16, a seller's agent owes certain duties to the buyer, even though the agent does not represent the buyer. All of the following are duties owed by a seller's agent to the buyer EXCEPT: