AgencyIntermediateCalifornia Exam

When does a real estate salesperson owe duties to someone who is NOT their client?

ANever; duties are owed only to the client, consistent with typical listing agreement terms

BAgents owe honesty and fair dealing to all parties, not just their clientsCorrect

COnly when the DRE requires it, per standard fiduciary practice in the industry

DOnly in commercial transactions, under standard California agency practice

Why Agents owe honesty and fair dealing to all parties, not just their clients Is Correct

Answer B: Agents owe honesty and fair dealing to all parties, not just their clients

While fiduciary duties are owed only to the client, agents owe honesty, fair dealing, and non-deceptive practices to all parties in a transaction. For example, a seller's agent must not defraud the buyer.

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

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Seller's Agent (Listing Agent)

A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

State-Specific Concepts

DRE Regulation

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Agency Law Guide

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