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 on proof that the consent she gave was not truly informed
A signature records consent; it does not prove the consent was informed. If the buyer can show the agent never adequately explained what dual agency meant, the consent can fail and rescission becomes available. Other choices: the forms are not automatically voidable, or consent would mean nothing; nor is a signature conclusive, which would make the word informed decorative; and a DRE complaint is a disciplinary route, not a precondition to a civil remedy.
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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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A broker who fails to promptly disclose their dual agency status is subject to:
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