AgencyIntermediateCalifornia Exam

A buyer's agent shows a buyer a property listed by her own broker. If neither agent is designated, this creates:

ANo agency issue, per standard fiduciary practice in the industry
BA dual agency situation that requires disclosure and consentCorrect
CAn automatic sub-agency, under standard California agency practice
DA violation that terminates both agencies, as commonly applied in brokerage relationships

Why A dual agency situation that requires disclosure and consent Is Correct

Answer B: A dual agency situation that requires disclosure and consent

When both the listing agent and buyer's agent work for the same broker, dual agency exists at the brokerage level. California law requires written disclosure and consent from both buyer and seller before the transaction can proceed.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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