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:
Correct Answer
B) Negotiating the lowest possible price for the buyer's benefit
A seller's agent does NOT have a duty to negotiate the lowest possible price for the buyer. The seller's agent has a fiduciary duty to the seller, which includes negotiating the best terms for the seller. Negotiating a low price for the buyer would directly conflict with the agent's duty to the seller.
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Previous Question
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?
Next Question
A homeowner in California asks a friend who is a licensed real estate agent to help sell their home but says, 'Don't worry about any formal paperwork — just find me a buyer.' The agent finds a buyer and the sale closes. The homeowner then refuses to pay the commission. Under California law, can the agent collect the commission?