Agency
A broker who operates as a 'transaction broker' (non-agent facilitator) in California:
AIs fully permitted and represents neither party
BIs not recognized as a valid agency relationship under California law — agents must represent a principal✓ Correct
CMay only be used in commercial transactions, not residential
DMust still provide full fiduciary duties to both parties
Explanation
California does not recognize transaction brokerage (non-agency) as a formal status. California licensees must be in an agency relationship — representing the seller, buyer, or both (dual agency). Pure 'non-agent facilitator' roles are not authorized under California real estate law.
Related California Agency Questions
- Under California law, an agent must present all written offers to the seller unless the seller has given written instructions to the contrary. This obligation extends to offers received:
- Under California law, a real estate salesperson legally works under the license of and owes their primary fiduciary duty to:
- A dual agent represents:
- When may a California real estate licensee act as a principal (buying or selling for themselves) rather than as an agent?
- An agent who represents both the buyer and the seller in the same transaction is known as a:
- An agent who represents only the seller is obligated to disclose to the buyer which of the following?
- An agent who acts beyond the scope of their authority may be liable for:
- What is 'agency by estoppel'?
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