A California brokerage has obtained valid dual agency consent for a transaction in which Agent Diana represents the seller and Agent Frank represents the buyer. During negotiations, the buyer privately tells Agent Frank he is willing to pay $20,000 above the asking price. Under California Civil Code §2079.21, how must Agent Frank treat this information?
Correct Answer
D) He must not disclose the buyer's willingness to pay more to the seller or Agent Diana without the buyer's express permission
California Civil Code §2079.21 expressly prohibits a dual agent from disclosing to the seller that the buyer is willing to pay a price greater than the offered price, without the buyer's express written consent. This restriction applies to all licensees acting under the dual agent broker — including Agent Frank. The prohibition runs to the seller and the seller's representative (Agent Diana); it does not prevent the managing broker from being aware of the information, but the broker cannot use or relay it to benefit the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
More Laws Of Agency Fiduciary Duties Questions
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