Under California law, which of the following most accurately describes the legal nature of the relationship between a real estate agent and their client?
Correct Answer
C) A fiduciary relationship in which the agent owes the client duties of loyalty, confidentiality, and full disclosure
Under California Civil Code §2079.16 and established agency law, the principal-agent relationship is a fiduciary relationship — the highest duty of care recognized in law. The agent owes the client duties of loyalty, confidentiality, disclosure, obedience to lawful instructions, reasonable care, and accounting. These duties arise by operation of law and cannot be fully waived by contract.
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A seller instructs their California listing agent to decline showings to prospective buyers of a specific ethnic background. Which response best describes the agent's legal obligation?
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Under California law, a listing agent's duty to disclose material facts to the buyer includes all of the following EXCEPT: