Under California law, what is the legal term for an agent who represents both the buyer and the seller in the same real estate transaction?
Correct Answer
A) Dual agent
Under California Civil Code §2079.13(d), a dual agent is an agent who represents both the buyer and the seller in the same transaction. Dual agency is legal in California but requires written disclosure and informed consent from both parties.
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Previous Question
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?
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A California real estate agent representing a buyer receives a bonus from a builder for each buyer brought to the builder's development. The agent does not disclose this arrangement to the buyer. Under California law, what is the primary legal problem with this situation?