Without being licensed as an escrow officer, a broker may not handle escrow activities when they:
Correct Answer
D) are neither an agent nor a party to the transaction.
Financial Code 17006(a)(4) exempts from escrow licensing any broker licensed by the Real Estate Commissioner while performing acts in the course of or incidental to a real estate transaction in which the broker is an agent or a party to the transaction, and in which the broker is performing an act for which a real estate license is required. A broker who buys or sells for their own account is a party, so a principal fits the exemption just as the listing or buyer's agent does. The exemption fails only when the broker has neither an agency role nor a stake in that transaction, because then nothing the broker does is incidental to a deal of their own. Escrowing that kind of outside transaction requires an escrow agent license.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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.
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:
- → Under California Business and Professions Code §10140.6, what must a licensee disclose on solicitation materials intended to be the first point of contact with consumers, such as a business card or an open house sign?
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- → A California real estate salesperson leaves one brokerage and is retained by another. Who reports the change to the Department of Real Estate, and by when?
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