Under California law, when a dual agent negotiates a real estate transaction, what limitation does the dual agency impose on the agent's fiduciary duties?
Correct Answer
C) The dual agent cannot disclose confidential pricing information from one party to the other without permission
Under California Civil Code §2079.16 and §2079.21, a dual agent owes fiduciary duties to both parties, but the duty of confidentiality prevents the agent from disclosing one party's confidential information to the other. For example, the agent cannot tell the buyer the seller's minimum price, or tell the seller the buyer's maximum price, without express permission.
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