A buyer asks their California real estate agent to submit a purchase offer in the agent's own name to keep the buyer's identity hidden from the seller. Which statement best describes the agent's obligations under this arrangement?
Correct Answer
C) The agent may act in this capacity but must disclose to the seller that they are acting as an agent, not as a principal purchasing for their own account
California law permits an agent to submit an offer on behalf of a buyer who wishes to remain anonymous, but the agent must disclose to the seller that they are acting in an agency capacity — meaning they are representing another party — rather than purchasing the property for themselves. This prevents the seller from being misled into thinking they are dealing with the agent as a principal buyer. The agent must also obtain their broker's written consent per DRE guidelines. The buyer's specific identity need not be revealed, but the existence of the agency relationship must be.
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