A California listing agent receives a verbal offer from a prospective buyer. What is the listing agent's obligation regarding this offer?
Correct Answer
C) Present the offer to the seller promptly and let the seller determine how to respond
Under California Civil Code §2079.17 and the fiduciary duty of disclosure, a listing agent must present all offers to the seller promptly, regardless of form. The agent's role is to communicate the offer and allow the seller to decide how to respond — including whether to request a written offer. Withholding or filtering offers based on the agent's own judgment violates the fiduciary duty of loyalty and full disclosure owed to the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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:
- → Under California Business and Professions Code §10140.6, what must a licensee disclose on solicitation materials intended to be the first point of contact with consumers, such as a business card or an open house sign?
- → A California buyer's agent fails to note a material defect during the visual inspection required by Civil Code §2079. The buyer discovers the defect eight months after close of escrow and wants to sue the agent for breach of that inspection duty. What limitations period applies?
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
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- → A California real estate salesperson leaves one brokerage and is retained by another. Who reports the change to the Department of Real Estate, and by when?
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