Fournier Law Blog

Intelligent legal insight from our team of experienced attorneys.


Court Ruling May Affect Business Practices for Dual Agents


A recent ruling by the California Supreme Court might affect some real estate agents and their customers.   Specifically addressed in this court case are “dual agents” and the agent’s responsibility to serve the seller as well as the home buyer equally and ethically.

supreme-court-1-1224507In the case brought to the courts, a home buyer in California purchased a home in 2007.  The buyer’s real estate agent worked for the same real estate firm as the seller’s agent. Therefore, the real estate broker was, in fact, a dual agent in the real estate transaction.   It later came to light that the home’s square footage was actually significantly less than what was quoted on the flyer provided by the seller’s agent.    Based on evidence presented, the justices determined that the buyer’s agent “…breached his fiduciary duty by failing to communicate all of the material information he knew about the square footage.”

In an article published in OCRegister.com, the journalist, Marilyn Kalfus, describes how this ruling could affect both agents and consumers.   Specifically, some view this ruling a win for home buyers.  In essence, it will ensure home owners are provided thorough and detailed information about the home they plan on purchasing.    It doesn’t seem as though the ruling will end dual agent transactions, but it will require brokers to balance the communication they are providing to home buyers while protecting private information that may have been provided by the seller.

Read the entire article.


Photo Credit:  David Lat