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Laws Of Agency Fiduciary DutiesDual_agencyMEDIUM

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; both associates hold their licences through the same broker, so the brokerage is the dual agent

Dual agency follows the licence, and both associates hold theirs through the same broker. Where their desks are makes no difference. Other choices: separate offices are not separate entities; distance does not divide a brokerage; and there is no minimum mileage in California law, which is a detail invented to sound plausible.

Answer Options
A
Yes, because agents in separate offices operate as independent entities under California law
B
Yes, because the 30-mile separation provides sufficient physical separation to avoid dual agency
C
No; both associates hold their licences through the same broker, so the brokerage is the dual agent
D
No, but only because the offices are less than 50 miles apart, which is the minimum distance required

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Related Topics & Key Terms

Key Terms:

dual_agencyseparate_officesgeographic_irrelevantmanaging_broker

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.

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