What are the three steps of the agency disclosure in proper chronological order?
Correct Answer
D) Disclose, elect, confirm.
Agency disclosure: disclose, elect, confirm. The agent discloses, parties elect agency, then confirm in writing.
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Related Topics & Key Terms
Related Topics:
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Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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.
More Laws Of Agency Fiduciary Duties Questions
When the administrator of an estate sells a parcel:
Seller Sally lists her property with Agent Fred and receives an offer. Agent Fred convinces Seller Sally to accept the offer by verbally promising her he will find her an ideal replacement home before the close of escrow. Agent Fred is unable to find an acceptable replacement home for Seller Sally before the close of escrow. Which of the following is most correct?
Which of the following is NOT a fiduciary duty owed by an agent to their principal?
A California listing agent receives a verbal offer from a buyer while the seller is on vacation and unreachable. The verbal offer has a 24-hour acceptance deadline. Under California law, what should the agent do?
Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → A seller instructs their California listing agent to decline showings to prospective buyers of a specific ethnic background. Which response best describes the agent's legal obligation?
- → A buyer directly asks a seller's agent whether anyone has ever died in the property. The only death on record occurred four years ago from natural causes. Under California Civil Code §1710.2, how must the agent respond?
- → Broker Thompson in Los Angeles takes a net listing on a property where the seller wants to receive $500,000 net. The property sells for $560,000. Under California law, which statement about this arrangement is MOST accurate?
- → A California dual agent performs a walkthrough of a listed property but spends only a few minutes in the garage and does not note visible water stains on the walls or discoloration on the ceiling. After closing, the buyer discovers severe mold. The seller knew about the mold but never disclosed it. The buyer sues the dual agent. Which of the following best describes the dual agent's potential liability?
- → A prospective buyer directly asks a California listing agent whether anyone has died in the home. The agent knows a murder occurred there 18 months ago. Which of the following best describes the agent's legal obligation?
- → A California listing broker enters into an exclusive right to sell listing. The listing agreement provides for a 5% total commission with 2.5% offered to cooperating brokers through the MLS. The seller asks the broker to add a clause stating the seller will not be liable for any cooperating broker's commission if the buyer's broker agreement requires the buyer to pay their own broker. Under California law, is this clause enforceable?
- → A California listing broker's exclusive right to sell agreement expired on March 1. On March 20, a buyer who first viewed the property during an open house on February 15 submits an offer through a different broker. The listing agreement contained a 90-day safety clause. Under California law, what is the MOST likely outcome regarding the original listing broker's commission?
- → A real estate agent is obligated to communicate any offer to the principal:
- → 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?
- → Broker Martinez in San Diego tells a seller, "I always charge a 6% commission — it's the standard rate in this area." Under California law, what is problematic about this statement?
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