house and asks many questions about the property. The

The Duty to Disclose: Segment 5 : California Agency Disclosure Law and Diclosure of Negotiability of Real Estate Commissions Flashcards A buyer walks into a Sunday Open House being held by a Listing Agent. The buyer spends a great deal of time in the house and asks many questions about the property. The Listing Agent asks the buyer if there is interest in purchasing the property. The buyer says he would like to make an offer. The Listing Agent indicates to the buyer that he would be happy to write the offer. At this time, the

Listing Agent may do all of the following:

• orally disclose to the buyer that she will be representing

both the seller and the buyer.* deliver to the buyer the Disclosure Form immediately but in no case later than the signing of the offer by the buyer.* have the buyer confirm in writing the agency relationship that was initially orally disclosed to the buyer by the Listing Agent.The following statements is TRUE regarding acknowledgement of receipt of the Disclosure Statement The seller's an buyer's agents are required to obtain from the seller or buyer a signed acknowledgment of receipt of the Disclosure Form.The Disclosure Form is required by statute in all of the

following transactions EXCEPT:

any sale of a mobile home by a mobile home dealer when that mobile home is going to be placed on a foundation.The requirements of Civil Code 20793.14: * The listing/seller's agent must deliver to the seller prior to the time the listing is signed by the seller a DISCLOSURE FORM entitled "DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP" (hereinafter referred to as DISCLOSURE FORM). The purpose of this form is informational.* The buyer's agent must deliver to the buyer a DISCLOSURE FORM entitled "DISCLOSURE

REGARDING REAL ESTATE AGENCY

RELATIONSHIP"(hereinafter referred to as DISCLOSURE FORM) as soon as practical but always prior to the execution of an offer. The purpose of this form is informational. Agents must orally inform the buyer and seller whether they are acting exclusively as agents of the buyer, exclusively as agents of the seller, or representing both seller and buyer as a dual agent. The purpose of this oral disclosure is to inform the buyer or seller about whom the agent intends to represent. In the contract for purchase and sale of real property, the agents must confirm in writing the agency relationships involved in the transaction and must obtain a signed acknowledgement receipt from that seller or buyer. The purpose of the confirmation is for all parties in the transaction to acknowledge whom the various agents represent.Discuss the typical sequence of events regarding Agency Disclosure.Example 1 - A buyer walks into a Sunday "Open House" being held by a Listing Agent. The buyer spends a great

deal of time in the house and begins to ask a number of questions about the property. The Listing Agent orally advises the buyer that he will represent the seller only in this transaction, and consequently the buyer should find a Buyer Agent to represent him. It would probably be advisable for the Listing Agent to give the buyer the Agency DISCLOSURE FORM at this timeExample 2 - A buyer walks into a Sunday "Open House" being held by a Listing Agent. The buyer spends a great deal of time in the house and asks many questions about the property. The Listing Agent asks the buyer if there is interest in purchasing the property. The buyer says he would like to make an offer.The Listing Agent indicates to the buyer that he would be happy to write the offer. At this time, the Listing Agent must orally disclose to the buyer that he would be representing both the seller and the buyer. The Agency DISCLOSURE FORM must be given to the buyer by the Listing Agent at this time, but in no case later than the signing of the offer by the buyer.Example 3 - A Buyer Agent begins to work with a buyer to find a property. The Buyer Agent orally explains that she works as a buyers broker, representing exclusively the interests of the buyer. Between this moment and the time the buyer executes an offer on a property, the Buyer Agent must give to the buyer the Agency DISCLOSURE FORM. In the offer, the buyer will confirm in writing that the Buyer Agent represents the buyer exclusivelyExample 4 - A Buyer Agent begins to work with a buyer to find a property. The Buyer Agent orally explains that he works as a buyers broker, representing exclusively the interests of the buyer. A property is located for purchase that is listed by a branch office of the company for which the Buyer Agent works. The Buyer Agent must at this time orally advise the buyer that on this property, since the property is listed with the company in which the Buyer Agent has his license, that he will be representing both the seller and the buyer in this transaction. The Buyer Agent must deliver to the buyer the Agency DISCLOSURE FORM at some time between the initial oral agency disclosure and the time the buyer signs the offer to purchase.Example 5 - A Listing Agent receives a call from an owner of a property who is interested in listing his house for sale. The Listing Agent makes a listing appointment. At the appointment, the Listing Agent should orally explain to the seller that he will represent the seller exclusively in any potential transaction unless the buyer agent should happen to work for the same

company as the listing agent. In that case, the buyer agent would be representing both the seller and the buyer. Prior to signing the listing agreement, the Listing Agent must deliver to the seller the Agency DISCLOSURE FORM.

The process of DISCLOSURE FORM delivery* The seller's agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. California Civil Code Section 2079.14(a)* The buyer's agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase. If the offer to purchase is not prepared by the buyer's agent, the buyer's agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer. California Civil Code Section 2079.14(bThe buyer and seller agents are required to obtain from the seller or buyer a signed acknowledgment of receipt of the

DISCLOSURE FORM.

The main components of the initial oral Disclosure of Agency and written Confirmation of Agency.Oral Disclosures as required by California Civil Code Section 2079.17 As soon as practical, the selling agent shall disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyer's agent, exclusively as the seller's agent, or as a dual agent representing both the buyer and sellerWritten Confirmation of the Agency Relationship The relationship between the buyer agent and the buyer and seller shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. - California Civil Code Section 2079.17(a) The rules relating to the delivery of the Disclosure Regarding Real Estate Agency Relationship (Disclosure

Form) requires that:

the listing agent must deliver the Disclosure Form to the seller prior to the time the listing is signed by the seller.The content and text of the Disclosure Form: is required and set forth in California statute.