AgencyIntermediateCalifornia Exam

Under California law, if a listing agent also represents the buyer in the same transaction without proper disclosure and consent, the listing agent has committed:

ASimple negligence with no disciplinary consequence, consistent with typical listing agreement terms
BUndisclosed dual agency, which is illegal and may result in loss of commission, civil liability, and DRE disciplineCorrect
CA technical violation that can be cured by retroactive disclosure, per standard fiduciary practice in the industry
DAn act that is only problematic if the seller files a formal complaint, under standard California agency practice

Why Undisclosed dual agency, which is illegal and may result in loss of commission, civil liability, and DRE discipline Is Correct

Answer B: Undisclosed dual agency, which is illegal and may result in loss of commission, civil liability, and DRE discipline

Undisclosed dual agency violates California Civil Code §2079.17, which requires informed written consent from both parties before an agent can represent both in the same transaction.

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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