A California listing agent wishes to purchase the property they are currently representing as the seller's agent. Under California Business and Professions Code §10176(a), what must the agent do before proceeding with the purchase?
Correct Answer
A) Disclose their licensed status and intent to purchase in writing, and obtain the seller's informed written consent before completing the transaction
Under California Business and Professions Code §10176(a), a licensee who directly or indirectly acquires an interest in property must disclose that interest in writing to the seller. Because the agent also owes fiduciary duties to the seller under Civil Code §2079.16, they must disclose their licensed status, their intent to purchase, and any material information they have gained through the listing. The seller must then provide informed written consent to the transaction. Failure to make this written disclosure constitutes grounds for license suspension or revocation.
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Under California law, the duty of confidentiality requires a listing agent to keep all of the following information about the seller confidential EXCEPT:
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