A California agent negotiates a 12-month lease of an apartment in a three-unit residential building for a prospective tenant. Must the agent deliver the Disclosure Regarding Real Estate Agency Relationships form?
Correct Answer
A) No, because the agency disclosure law reaches a lease only when the leasehold exceeds one year
Civil Code 2079.13 defines 'sell, sale, or sold' for the agency disclosure article to include a transaction creating a leasehold exceeding one year's duration. A lease longer than a year therefore requires the disclosure form, while a month-to-month tenancy or a term of exactly one year does not. A 12-month lease does not exceed one year, so the statutory form is not triggered here, although the licensee still owes both parties honesty and fair dealing. Unit count does not decide the question in an agency disclosure item; the length of the leasehold does.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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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