Table 1 – The 3 Agency Relationships Demystified
| Agency Type | Who is the Client? | What You Owe | What You Cannot Do | One-Sentence Client Explanation |
|---|---|---|---|---|
| Seller’s Agent | The Seller | Utmost care, integrity, honesty and loyalty. | Cannot disclose the client’s confidential bargaining position (bottom line, motivations, price flexibility) without permission. | "I represent the Seller's interests exclusively to get them the best terms possible." |
| Buyer’s Agent | The Buyer | Utmost care, integrity, and loyalty. | Cannot disclose the client’s confidential bargaining position (bottom line, motivations, price flexibility) without permission. | "I am your advocate, focused solely on finding you the right home and protecting your interests." |
| Dual Agency | Both Parties | Fiduciary duty (utmost care, integrity, honesty, loyalty) to both parties; honest and fair dealing/good faith; reasonable skill and care; disclosure of known material facts; and required confidentiality. | Cannot disclose the client’s confidential bargaining position (bottom line, motivations, price flexibility) without permission. | "I facilitate the deal for both sides, but I cannot use one side's confidential info to advantage the other." |
Table 2 – Chunk-by-Chunk Walkthrough for Clients
| Chunk | What it Means | What to Say (Script) |
|---|---|---|
| Definitions | Explains the legal roles of agents. | "This front page defines our potential roles so you know exactly how the law views our relationship." |
| Affirmative Duties | Lists the broker's legal obligations. | If I represent you exclusively, I’m legally bound to put your interests first while treating the other party honestly. If dual agency happens, I owe duties to both sides and can’t use one side’s confidential info to benefit the other. |
| Dual Agency Limits | Sets rules for representing both sides. | "If dual agency happens, I can't reveal your bottom line price or motivations to the other side without your permission." |
| Acknowledgment | Confirms receipt of the information. | "Your signature here just confirms I’ve given you this disclosure as required by California law." |
Cancellation Rights in California Transactions
Purchase Agreement Basics (C.A.R. RPA Explained): A Plain-English Guide for California Agents
California Anti-Fraud Rules in Real Estate: A Practical Compliance Guide for New Agents
Founder, Adhi Schools
Kartik Subramaniam is the Founder and CEO of ADHI Real Estate Schools, a leader in real estate education throughout California. Holding a degree from Cal Poly University, Subramaniam brings a wealth of experience in real estate sales, property management, and investment transactions. He is the author of nine books on real estate and countless real estate articles. With a track record of successfully completing hundreds of real estate transactions, he has equipped countless professionals to thrive in the industry.
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