Agency
How is an agency relationship most commonly created in California real estate?
ABy oral agreement ratified by the DRE
BBy express written agreement, such as a listing or buyer-broker agreement✓ Correct
CAutomatically when a licensee shows a property to a buyer
DWhen the broker receives compensation from any party
Explanation
Agency is most commonly created by an express written agreement — a listing agreement (creating seller agency) or a buyer-broker agreement (creating buyer agency). Agency can also arise by implication or ratification, but California's Statute of Frauds requires listing agreements to be in writing to be enforceable.
Related California Agency Questions
- What is a 'safety clause' (protection clause) in a listing agreement?
- An agent who secretly purchases a listing from their own seller without disclosure has violated which fiduciary duty?
- The California Agency Disclosure law (Civil Code §2079) requires an agent to provide the Agency Disclosure form to buyers and sellers at what point in the transaction?
- When does an agency relationship typically terminate in a listing agreement?
- When a seller lists a property 'net' — meaning they want a specific amount and the agent keeps everything above that — this arrangement is:
- An agent who represents both the buyer and the seller in the same transaction is known as a:
- A buyer's agent has a duty to maintain confidentiality about the buyer's motivations and financial position. Which of the following CAN the agent reveal to the seller?
- What is the primary difference between a 'special agent' and a 'general agent' in real estate?
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