AgencyIntermediateCalifornia Exam

What is 'dual agency' in a California real estate transaction?

AWhen two brokers both represent the seller
BWhen one broker represents both the buyer and the seller in the same transactionCorrect
CWhen a broker represents a buyer in purchasing two properties simultaneously
DWhen a listing agent works with two different sellers on competing properties

Why When one broker represents both the buyer and the seller in the same transaction Is Correct

Answer B: When one broker represents both the buyer and the seller in the same transaction

Dual agency occurs when the same broker (and their licensees) represents both buyer and seller in the same transaction. It creates a conflict of interest and must be disclosed to and consented to by both parties in writing before the offer is accepted.

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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