AgencyIntermediateCalifornia Exam

What is 'informed consent' in the context of California dual agency?

AThe seller and buyer both receive the same commission disclosure form, as commonly applied in brokerage relationships
BBoth the buyer and seller knowingly agree to dual agency representation after being fully informed of its implicationsCorrect
CThe broker obtains written permission from the DRE to represent both parties, consistent with typical listing agreement terms
DBoth parties agree to use the same escrow company chosen by the broker, per standard fiduciary practice in the industry

Why Both the buyer and seller knowingly agree to dual agency representation after being fully informed of its implications Is Correct

Answer B: Both the buyer and seller knowingly agree to dual agency representation after being fully informed of its implications

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.

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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