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Agency and Fiduciary Duties, 17% of the examination

Agency disclosure

The statutory three-step sequence: disclose the nature of agency relationships, elect the agency provided, confirm the election in the contract.

The listing agent delivers the disclosure form to the seller before entering into the listing agreement. The selling agent delivers it to the buyer as soon as practicable before the buyer signs an offer, and to the seller before presenting that offer. Confirmation happens in the purchase agreement or a separate writing executed with it.

See also

Dual agencyOne broker representing both buyer and seller in the same transaction.

See it in a question

One question from Agency and Fiduciary Duties, so the term lands in the context the exam uses it in.

Agency and Fiduciary Duties ยท 17%Disclosure of Agency

A listing agent learns at an open house that an unrepresented buyer will pay well above asking. What does the agent owe each party?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Laws of Agency and Fiduciary DutiesWho you represent, when that duty begins, and what you owe someone you do not represent. California runs its own disclosure regime and permits dual agency with consent, which is where borrowed national study material fails.17%Practise Agency and Fiduciary Duties34 questions on this area, every option explained.Practice

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