A California dual agent assists both parties in completing a purchase agreement for a single-family home. The buyer tells the dual agent that she plans to convert the garage into an illegal accessory dwelling unit after closing. Under California law, what should the dual agent do with this information?
Correct Answer
D) Keep it confidential; plans after closing are not material to this sale
What a buyer intends to do with the property after closing is not a fact about the property or the transaction, so it is neither disclosable to the seller nor a reason to abandon the client. Other choices: reporting a client's stated plan to the building department betrays the confidence; the seller is not affected by the buyer's later use; and refusing to continue punishes an intention, not an act.
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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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