Bay Area Real Estate Wiki

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====== Responsibilities of Agent to Non-Client Third Parties ======

Real estate agents owe limited duties to parties who are not their principals.

===== General Duties to Third Parties =====

  * Honesty and fair dealing
  * No misrepresentation or fraud
  * Disclosure of known material facts affecting value or safety
  * Compliance with real estate law

===== Disclosure of Material Facts =====

  * Must disclose known material defects
  * Applies even if agent represents the opposite party
  * Includes property condition and legal issues
  * Cannot conceal or misstate facts

===== No Fiduciary Duty =====

  * No duty of loyalty to non-clients
  * No duty to protect confidential information of non-clients
  * No obligation to advise on price or negotiation strategy

===== Property Condition Disclosure =====

  * Use of statutory disclosure forms when required
  * Transfer Disclosure Statement (TDS)
  * Natural Hazard Disclosure (NHD)
  * Known defects must be revealed

===== Duty to Avoid Negligence =====

  * Exercise reasonable care
  * Avoid misleading statements
  * Verify information when necessary

===== Dual Agency Considerations =====

  * Must treat both parties honestly
  * Cannot favor one party unfairly
  * Must disclose agency relationship clearly

===== Consequences of Breach =====

  * Civil liability
  * Disciplinary action by the DRE
  * Possible loss of license