The California agency relationship disclosure: who, what, and when

California agency disclosure: explain first, confirm the relationship separately

California's agency relationship disclosure explains seller agency, buyer agency, dual agency, and the duties associated with each. It helps a consumer understand representation before committing to it. The statutory form is specified in Civil Code section 2079.16. Its reverse carries sections 2079.13 through 2079.24, excluding section 2079.16 itself.

Who delivers it, and when?

Under Civil Code section 2079.14, the seller's agent provides the form to the seller before entering into the listing agreement. The buyer's agent provides it to the buyer as soon as practicable before execution of the buyer-broker representation agreement and execution of the buyer's offer. Do not postpone the buyer's disclosure until the offer when the representation agreement comes first. If the buyer's agent did not prepare the offer, that agent must present the form no later than the next business day after receiving the offer from the buyer.

The delivering agent obtains a signed acknowledgment of receipt. If a buyer or seller refuses to sign, section 2079.15 requires the agent to set forth, sign, and date a written declaration of the facts of the refusal. Receipt is different from choosing an agency relationship or consenting to dual agency.

What the form teaches

A seller's agent owes fiduciary duties to the seller; a buyer's agent owes them to the buyer. Both owe duties of reasonable skill and care, honest and fair dealing, good faith, and disclosure of qualifying known material facts to both sides. California permits dual agency with both parties' knowledge and consent. A dual agent owes fiduciary duties to both and cannot reveal protected confidential information, such as a party's negotiating price limit, without that party's express permission. Payment by the seller does not by itself make a buyer's agent the seller's agent. Consumers should read their agreements and obtain competent legal or tax advice when needed.

Confirmation identifies the actual relationship

Section 2079.17 adds disclosure and written confirmation of actual representation. As soon as practicable, the buyer's agent discloses to both buyer and seller whether that agent represents the buyer or both parties. The seller's agent discloses to the seller whether that agent represents the seller or both parties. Confirmation belongs in the purchase contract or a separate writing, before or at the relevant party's execution of the contract. The buyer-side separate writing is executed or acknowledged by seller, buyer, and buyer's agent; the seller-side writing by seller and seller's agent. An affiliated salesperson or broker associate may perform these duties for the broker. This confirmation supplements the earlier form; neither step replaces the other.