California Real Estate SalespersonLaws of Agency and Fiduciary DutiesMedium
A broker represents both the buyer and the seller in the same transaction. What must the broker obtain from both parties for this dual agency to be lawful in California?
- AApproval from the local Board of Realtors
- BA waiver signed only by the buyer since the seller pays commission
- CVerbal acknowledgment recorded in the broker's file
- DWritten informed consent confirming the dual agency relationship
Show answer & explanationAnswer & explanation
Correct answer: D. Written informed consent confirming the dual agency relationship
Under Civil Code 2079.17, when a broker acts as a dual agent, both the buyer and seller must sign a written confirmation acknowledging and consenting to the dual agency relationship after full disclosure of its implications.
Why the other options are wrong
- A. Local boards have no legal authority over agency consent requirements.
- B. Both parties, not just the buyer, must give informed written consent.
- C. Verbal acknowledgment does not satisfy the statutory written consent requirement.
Dual Agency Consent
A broker representing both parties in a transaction must obtain written, informed consent from both buyer and seller.
- Governed by Civil Code 2079.17
- Requires full disclosure of dual agency implications
- Failure to obtain consent can void agency and forfeit commission
Memory trick: Two parties, two signatures — no shortcuts in dual agency.