California Real Estate Salesperson Exam Practice – Quesiton 22

n

n

n

nnnn

Question

nnnn

Broker finds a cooperating broker without noticing the principal, who does the cooperating broker owe fiduciary duties to?

nnnn

Selections

nnnn

A. Principal

nnnn

B. The original broker

nnnn

C. No one

nnnn

D. None of the above

nnnnnnnn

---

nnnn

Answer: A

nnnn

---

nnnn

5 Keys Summary

nnnn

• The cooperating broker, who finds a buyer for a property listed by another agent, implicitly becomes a subagent in the transaction.

nnnn

• The primary responsibility and legal fiduciary duty of any agent, including a cooperating broker, are owed to the Principal (the client or seller).

nnnn

• This fiduciary relationship requires the agent to act with the utmost care, loyalty, and good faith in the best interests of the principal.

nnnn

• Even if the principal is not directly notified of the cooperating broker’s specific involvement, the cooperating broker’s fiduciary duties extend to that original principal.

nnnn

• This responsibility is reinforced by the imputed knowledge rule, which dictates that information known by the cooperating broker is legally presumed to be known by the principal.

nnnn

nnnn

Pages: 1 2 3