A California buyer's agent knows that their buyer client plans to use the property for illegal purposes (operating an unlicensed cannabis dispensary in a zone where it is prohibited). Under California law, what should the agent do?
Correct Answer
B) Refuse to assist, because the agent cannot take part in an illegal purpose
An agent who knows the client's purpose is unlawful cannot help accomplish it, whatever the client wants or the commission is worth. Other choices: confidentiality does not extend to furthering a crime; reporting the client to law enforcement is not the agent's role and would breach the duty owed; and a disclaimer in the contract does not make participation lawful.
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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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