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Pass California

Agency and Fiduciary Duties, 17% of the examination

Dual agency

One broker representing both buyer and seller in the same transaction.

Lawful in California with the informed written consent of both parties. The dual agent loses the ability to advocate on price and terms: they may not tell the buyer the seller will take less, or the seller that the buyer will pay more. They do not lose the duty to disclose material facts about the property to both sides. Because agency attaches at the broker level, two salespersons in one brokerage on opposite sides still creates dual agency.

See also

Fiduciary dutyThe duty of trust and confidence an agent owes a principal.Agency disclosureThe statutory three-step sequence: disclose the nature of agency relationships, elect the agency provided, confirm the election in the contract.

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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