A real estate broker enters into a listing agreement with a seller and assigns a salesperson to handle the listing. Under California law, who holds the agency relationship with the seller?
Correct Answer
A) The broker, because the agency relationship is established through the listing agreement
Under California Business & Professions Code §10132 and §10136, a salesperson may only perform licensed activities under the supervision of and on behalf of a licensed broker. The agency relationship is formed between the broker and the seller through the listing agreement. The salesperson acts as an extension of the broker, not as an independent agent of the seller.
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A buyer signs an exclusive buyer representation agreement with Agent A, then purchases a property by submitting an offer through Agent B without notifying Agent A. Which of the following best describes the buyer's legal exposure?
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At an open house, a listing agent engages in extended conversation with a prospective buyer, discussing the buyer's needs and financial situation in a way that leads the buyer to reasonably believe the agent is representing them. No written agreement exists. Under California law, what type of agency relationship may have been created?