A California managing broker operates two offices 30 miles apart. Agent Helen in the north office lists a home, and Agent George in the south office represents a buyer who wants to purchase Helen's listing. The managing broker argues that the geographic separation eliminates dual agency. Under California law, is the managing broker correct?
Correct Answer
C) No, because the location of the offices is irrelevant — the broker is the dual agent whenever associate licensees from the same brokerage represent both sides
Under California Civil Code §2079.13(d), dual agency exists when a broker, directly or through associate licensees, represents both parties. Geographic separation of offices within the same brokerage does not eliminate the dual agency relationship. The broker remains the dual agent regardless of office location.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Laws Of Agency Fiduciary Duties Question
Background Knowledge for Laws Of Agency Fiduciary Duties
Real World Application in Laws Of Agency Fiduciary Duties
Common Mistakes to Avoid on Laws Of Agency Fiduciary Duties Questions
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
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:
- → Broker fees deposited with the broker before they are earned are called:
- → A real estate broker is subject to disciplinary action from the Department of Real Estate (DRE) if they:
- → The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
- → When a broker wants to store documents electronically, the storage method may not allow the final documents to be altered. What method of electronic document storage is required by the Department of Real Estate (DRE)?
- → 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:
- → A seller’s broker needs to disclose:
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → If a 16-year-old emancipated minor wishes to sell real property, their broker may:
- → A broker who fails to promptly disclose their dual agency status is subject to:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam