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Info for Buyers / Sellers (Disclosures regarding Real Estate Agency Relationship)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you
should from the outset understand what type of agency relationship or representation you wish to
have with the agent in the transaction.
SELLER'S AGENT
A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A
Seller's agent or a subagent of that agent has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
Diligent exercise of reasonable skill and care in performance of the agent's duties.
A duty of honest and fair dealing and good faith.
A duty to disclose all facts known to the agent materially affecting the value or desirability of the
property that are not known to, or within the diligent attention and observation of the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the
other party that does not involve the affirmative duties set forth above.
BUYER'S AGENT
A selling agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these
situations, the agent is not the Seller's agent, even if by agreement the agent may receive
compensation for services rendered, either in full or in part from the Seller. An agent acting only for
a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
Diligent exercise of reasonable skill and care in performance of the agent's duties.
A duty of honest and fair dealing and good faith.
A duty to disclose all facts known to the agent materially affecting the value or desirability of the
property that are not known to, or within the diligent attention and observation of the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the
other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER & BUYER
A real estate agent, either acting directly or through one or more associate licensees, can legally
be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and
consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and
the Buyer.
A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either Seller or the
Buyer.
Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, the agent may not, without the express permission of the
respective party, disclose to the other party that the Seller will accept a price less than the listing
price or that the Buyer will pay a price greater than the price offered.
Excerpts from the Department of Real Estate (Disclosures in Real Property Transactions Handbook 2005 Sixth
Edition and in accordance with the mandates of California Civil Code Sections 2079.13 et seq.