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Practice Of Real Estate DisclosuresDre_regulationsHARD

A California real estate salesperson is also a licensed attorney. The salesperson/attorney wants to represent a client in a real estate transaction in a dual capacity — as the real estate agent and as the attorney. Under California law, what disclosure is required?

Correct Answer

D) The salesperson must disclose the dual capacity to all parties and ensure the client provides informed consent to dual representation

When a licensee holds dual professional licenses, they must make full disclosure of their dual capacity to all parties. The client must provide informed consent, understanding that the licensee is acting in two capacities with potentially different duties and fee structures. Transparency is essential to avoid conflicts of interest.

Answer Options
A
No special disclosure is required because holding dual licenses is common
B
Only the DRE needs to be notified; the client does not need to know
C
The salesperson must choose one capacity and cannot act in both roles simultaneously
D
The salesperson must disclose the dual capacity to all parties and ensure the client provides informed consent to dual representation

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Related Topics & Key Terms

Key Terms:

DREdual_capacityattorney_agentdisclosureinformed_consent

Related Concepts

A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.

Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.

Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.

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