Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
Correct Answer
C) Cal. Civil Code §2079.16, whose agency disclosure form states the duty of honest and fair dealing owed to both parties
The agency disclosure form whose wording is prescribed by Civil Code §2079.16 tells the seller and the buyer alike that every agent in the transaction owes them diligent exercise of reasonable skill and care, a duty of honest and fair dealing and good faith, and a duty to disclose facts materially affecting the value or desirability of the property. Those duties run to both parties, not only to the agent's own principal, which is exactly the obligation the question describes. The other sections address the seller's own disclosure statement, the agent's inspection duty, and an exemption from the inspection article.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
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- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
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