A salesperson lists a California property for the seller and then also represents the buyer who makes an offer on it. Under Civil Code section 2079.13(d) and the agency confirmation required by section 2079.17, what must be disclosed to both parties?
Correct Answer
A) That the salesperson is acting as a dual agent representing both the seller and the buyer
Civil Code section 2079.13(d) defines a dual agent as an agent acting, directly or through a salesperson or broker associate, for both the seller and the buyer in the same transaction, which is exactly this licensee's position. Section 2079.17 requires the agency relationship of each agent to be confirmed in writing to both parties, in the purchase agreement or a separate document, no later than execution of the buyer's offer. California permits the arrangement, but only with each principal's informed consent, and a dual agent may not reveal one side's willingness on price or terms to the other without permission.
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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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