Under California law, the fiduciary duty of 'disclosure' requires the agent to:
Correct Answer
C) Disclose all material information that could affect the principal's decisions in the transaction
The duty of disclosure requires the agent to proactively inform the principal of all material information that could affect their decisions. This includes market conditions, property defects, competing offers, changes in circumstances, and any other facts that a reasonable person would consider important in making a transaction decision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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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