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 may not disclose either party's price limit
Dual agency keeps every other duty and removes one: confidences about price do not cross without permission. Other choices: a dual agent still owes fiduciary duties to both; loyalty is not reassigned to the seller because of who pays; and there is no rule favouring the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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Previous Question
A California listing agent inspects a property and notices the garage has been converted to a living space with what appears to be unpermitted plumbing and electrical work. Under Civil Code §2079, what must the agent do?
Next Question
A California listing agent receives a verbal offer from a buyer while the seller is on vacation and unreachable. The verbal offer has a 24-hour acceptance deadline. Under California law, what should the agent do?