California Real Estate Broker ExaminationPractice of Real Estate and Mandated DisclosuresMedium
A real estate broker is acting as a dual agent in a residential transaction. Under California Civil Code Section 2079.14 (Agency Disclosure Law), what specific disclosure is required regarding the broker's role as a dual agent?
- AThe broker must verbally inform both parties of the dual agency, but written consent is only required from the seller.
- BThe broker must disclose their commission split between buyer and seller in writing.
- CThe broker is prohibited from acting as a dual agent in California residential transactions.
- DThe broker must disclose in writing that they represent both the buyer and the seller, and obtain the written consent of both parties.
Show answer & explanationAnswer & explanation
Correct answer: D. The broker must disclose in writing that they represent both the buyer and the seller, and obtain the written consent of both parties.
California's Agency Disclosure Law (Civil Code Section 2079.14) specifically requires that a broker acting as a dual agent must provide written disclosure of their dual agency and obtain the written consent of both the buyer and the seller before or at the time of executing the purchase agreement.
Why the other options are wrong
- A. Verbal disclosure is insufficient; written consent from both parties is legally mandated.
- B. Commission splits are generally not a mandatory disclosure requirement for dual agency itself, though compensation is typically disclosed elsewhere.
- C. Dual agency is permissible in California residential transactions, provided all legal disclosure and consent requirements are strictly met.
CA Dual Agency Disclosure
California law requiring specific written disclosure and consent when a real estate broker acts as a dual agent representing both buyer and seller.
- Mandatory written disclosure of dual agency to both parties.
- Mandatory written consent from both buyer and seller required.
- Must occur before or at the time of purchase agreement execution.
Memory trick: Dual Agent: Written Disclosure, Written Consent, No Regret!