A California dual agent broker personally negotiates a transaction between her seller client and her buyer client. During negotiations, the seller privately tells the broker that he is going through a divorce and must sell quickly. The buyer then asks the broker whether the seller has any urgency to sell. How should the broker respond?
Correct Answer
A) Tell the buyer that she cannot share the seller's personal circumstances without the seller's permission
The seller's personal motivation for selling, such as a divorce, is confidential information that a dual agent must not disclose without the seller's express permission under California Civil Code §2079.21. The seller's urgency to sell could weaken the seller's bargaining position, and protecting this information is part of the dual agent's duty.
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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
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
What are the three steps of the agency disclosure in proper chronological order?
An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
- → When showing a listed residential property of one to four dwelling units to potential buyers, the listing broker is required to disclose:
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- → A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
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