AgencyIntermediateCalifornia Exam

In California, when a broker represents both buyer and seller with written consent, what limitations apply to the dual agent?

AThe agent may disclose the seller's bottom line to help close the deal, under standard California agency practice
BThe agent cannot disclose confidential information of either party or advocate exclusively for either partyCorrect
CThe agent must automatically reduce their commission, as commonly applied in brokerage relationships
DThe agent may only represent buyer and seller if they use separate salespeople, consistent with typical listing agreement terms

Why The agent cannot disclose confidential information of either party or advocate exclusively for either party Is Correct

Answer B: The agent cannot disclose confidential information of either party or advocate exclusively for either party

A dual agent must remain neutral and cannot advocate for either party at the expense of the other, nor disclose either party's confidential negotiating position. Their role is to facilitate the transaction fairly for both sides.

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.

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