February 2017 Newsletter
Updated: Aug 25, 2020
WHAT OBLIGATIONS DOES A DUAL REAL ESTATE AGENT HAVE?
In Horiike v. Coldwell Banker (2016), the California Supreme Court ruled that a real estate brokerage representing both the buyer and seller in a deal (a dual agency) owes the same fiduciary responsibilities to each party, potentially setting a significant precedent for how information is shared in so-called "dual-agency transactions."
This decision is important for multiple reasons. Obviously, it increases - to significant degree - the duties and responsibilities of a dual agent. Based on the same, many agents will be legally obligated to disclose much more to the opposing principal in connection with a real estate transaction.
On the one hand, this requirement will discourage dual agency and limit the same as I anticipate many agents will feel uncomfortable proceeding as a dual agent due to these new requirements. Conversely, this new case law will be a boon for consumers and real estate principals who should have access to greater information and more transparency in connection with a real estate deal.
If you have questions about real estate or business law matters, please contact the Law Offices of Joseph Miskabi.