Which of the following actions would most likely create an undisclosed dual agency?
Why A listing agent prepares a comparative market analysis for a buyer without disclosing they represent the seller Is Correct
Answer B: A listing agent prepares a comparative market analysis for a buyer without disclosing they represent the seller
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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- In California, a listing agent who also brings the buyer and represents both parties must disclose dual agency:Agency
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- Which type of agency relationship is created when a principal approves an act already performed without prior authorization?Agency
- Under the Agency Disclosure requirements of California Civil Code Section 2079, a listing agent must provide the agency disclosure form to a seller:DRE & Licensing
Key Terms to Know
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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