Question

In a real estate transaction, who is not responsible for agency disclosure?

Selections

A. Principal

B. Listing Broker

C. Selling Broker

D. Cooperating Broker

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Answer: A

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5 Keys Summary

• The Principal (the client, such as the buyer or seller) is the party who is not responsible for creating or presenting the agency disclosure.

• The responsibility for providing the agency disclosure rests primarily with the licensed real estate agents and their employing brokers.

• This responsibility applies to the Listing Broker (seller’s agent), the Selling Broker (buyer’s agent), and any Cooperating Brokers involved in the transaction.

• The Principal is the client to whom the disclosure is made, and while they must review and sign the form to acknowledge the relationship, they are the recipient, not the provider.

• Agency disclosure is required by statute in California to clarify the responsibilities and duties owed by the agent to the principal and third parties in a real estate transaction.

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