A California brokerage has a company policy that prohibits dual agency in all transactions. Agent Sarah lists a property, and another agent in the same brokerage, Agent Kevin, wants to submit an offer on behalf of his buyer client. Under this brokerage policy, what should happen?
Correct Answer
B) Agent Kevin must refer his buyer to an agent at a different brokerage so the transaction can proceed without dual agency
A brokerage may adopt a company policy prohibiting dual agency, and this policy is permissible under California law. California law allows dual agency with consent but does not require a brokerage to permit it. If the brokerage prohibits dual agency, Agent Kevin must refer his buyer to an outside brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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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