Agency
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
BUndisclosed dual agency, which is illegal and may result in loss of commission, civil liability, and DRE discipline✓ Correct
CA technical violation that can be cured by retroactive disclosure
DAn act that is only problematic if the seller files a formal complaint
Explanation
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. Consequences may include forfeiture of commission, rescission of the contract, civil damages, and DRE disciplinary action.
Related California Agency Questions
- What is the primary difference between a 'special agent' and a 'general agent' in real estate?
- Which of the following best describes 'agency' in real estate?
- An agent who creates the impression of being someone's agent through conduct, even without an express agreement, has created what type of agency?
- In California, a real estate agent who represents the buyer and the seller in the same transaction is known as a:
- After a listing expires, a former listing agent who contacts the seller directly to negotiate a new listing must:
- A buyer's agent owes which fiduciary duties to their client? (OLD CAR)
- In California, which form confirms the agency relationship at the time a purchase agreement is executed?
- A seller's agent has a fiduciary duty of loyalty. This means the agent must:
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