A California buyer and seller have both signed dual agency consent forms with their broker. The buyer later claims she did not fully understand the implications of dual agency when she signed. She wants to rescind the purchase agreement, citing the dual agency consent as defective. Under California law, what is the most likely outcome?
Correct Answer
B) The buyer may be able to rescind if she can prove the consent was not truly informed, meaning the agent failed to adequately explain dual agency and its implications
Under California law, consent to dual agency must be informed consent. If the buyer can demonstrate that the agent failed to adequately explain the nature, implications, and limitations of dual agency before obtaining her signature, the consent may be deemed defective. This could provide grounds for rescission of the purchase agreement, though the buyer bears the burden of proof.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
More Laws Of Agency Fiduciary Duties Questions
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