A California buyer asks her dual agent to recommend whether she should offer $500,000 or $480,000 for a property listed at $520,000. The dual agent also represents the seller. How should the dual agent handle this request?
Correct Answer
B) Give her comparable sales and market data so she can decide herself
A dual agent may inform but may not advocate a price for one side against the other, so the answer is data rather than a recommendation. Other choices: urging the lower number serves the buyer against the seller and the higher number does the reverse, and both are the advocacy dual agency forbids; and refusing to say anything abandons a client who is owed information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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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