Agency
What is 'informed consent' in the context of California dual agency?
AThe seller and buyer both receive the same commission disclosure form
BBoth the buyer and seller knowingly agree to dual agency representation after being fully informed of its implications✓ Correct
CThe broker obtains written permission from the DRE to represent both parties
DBoth parties agree to use the same escrow company chosen by the broker
Explanation
For dual agency to be lawful in California, both the buyer and seller must give informed written consent — meaning they understand what dual agency is, the limitations it places on the agent's duties, and still agree to proceed. Consent must be obtained before or when the offer is made.
Related California Agency Questions
- Which of the following best describes a 'special agent' in real estate?
- When may a California real estate licensee act as a principal (buying or selling for themselves) rather than as an agent?
- When does a California agency relationship typically terminate in a residential sale?
- Under California law, a real estate agent's duty to disclose applies to which of the following?
- A listing agent tells potential buyers that the seller 'is highly motivated and needs to sell quickly.' This statement is:
- An agent who locates a ready, willing, and able buyer for a property, but who was never authorized by the seller, may still claim a commission under what legal theory?
- Which of the following actions would most likely create an undisclosed dual agency?
- A 'designated agency' arrangement in California refers to:
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