California Real Estate SalespersonPractice of Real Estate and DisclosuresHard
A broker is representing both the buyer and seller in a sale of a single-family residence. According to California license law, when must the Agency Disclosure form be presented to the seller?
- ABefore the seller signs the listing agreement
- BOnly at the close of escrow
- COnly if the buyer requests it in writing
- DAt the time the buyer's offer is accepted
Show answer & explanationAnswer & explanation
Correct answer: A. Before the seller signs the listing agreement
California Civil Code requires that an agency disclosure be provided to the seller before entering into a listing agreement, ensuring the seller understands the nature of the agency relationship from the outset.
Why the other options are wrong
- B. Waiting until close of escrow would defeat the purpose of informed consent at listing.
- C. Agency disclosure is mandatory regardless of buyer request.
- D. Offer acceptance is too late; disclosure must occur earlier in the listing phase.
Agency Disclosure Timing
In California, agency relationships must be disclosed to a seller before the listing agreement is signed and to a buyer before signing the purchase agreement, per Civil Code 2079.14.
- Applies to 1-4 unit residential transactions
- Seller must receive disclosure before signing listing agreement
- Buyer must receive disclosure before signing offer if not already given
Memory trick: Disclose before you decide to list