Under California law, a listing agent is also licensed as a mortgage loan originator. When the agent recommends their own mortgage services to a buyer, what disclosure is required?
Correct Answer
C) The agent must disclose both roles and any benefit from the referral
Wearing two licences in one transaction is a conflict the parties are entitled to see, so the agent discloses the dual capacity and the financial benefit from the mortgage side. Other choices: holding both licences is what creates the duty rather than excusing it; nothing prohibits serving in both roles once it is disclosed; and disclosures made by the mortgage company do not discharge the agent's own.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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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