A California buyer is purchasing a home in a for-sale-by-owner (FSBO) transaction with no agents involved. Under California law, are the agency disclosure requirements triggered?
Correct Answer
A) No, the requirement applies only when a licensee is acting as an agent
The agency disclosure regime attaches to licensees. With no agent in the transaction there is no agency to disclose, so the forms are not required in a genuine for-sale-by-owner sale. Other choices: an unrepresented seller is not made to serve agency forms; the county recorder has no such requirement; and the answer is not that FSBO sales escape disclosure generally - the transfer disclosure statement and the other statutory disclosures still apply.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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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