A California dual agent knows that the buyer has been pre-approved for a $700,000 mortgage but is offering only $650,000 on a property listed at $675,000. The seller asks the dual agent whether the buyer can afford to pay more. How should the dual agent respond?
Correct Answer
C) Confirm that the buyer is financially qualified to purchase the property without disclosing the specific pre-approval amount
A dual agent should confirm general financial qualification without disclosing the buyer's specific pre-approval amount or ability to pay more than the offered price. Under California Civil Code §2079.21, the dual agent must not disclose that the buyer is willing or able to pay more than the offered price. Confirming general qualification maintains the buyer's confidentiality while providing the seller with reasonable assurance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
More Laws Of Agency Fiduciary Duties Questions
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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:
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- → 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:
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