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Dual agency in La Jolla: notice and written consent

Dual agency means one real estate company works for both the buyer and the seller in the same sale. This guide explains the written notice, the consent you sign, and the limits on what the agent can share.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers and sellers in La Jolla and coastal San Diego read these forms in plain words. Your lawyer can confirm what your own forms say. You can talk about fees with Weston directly.

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What dual agency means

An agent, or agency, is someone who acts for you in a deal. Dual agency is when one company (the broker) acts for both the seller and the buyer in the same home sale. It is allowed in California with written notice and written consent. This page does not tell you to accept or refuse it.

In this guide:

• What dual agency is
• How it usually happens
• The notice form and your written consent
• What a dual agent may not share about price
• The form that confirms who works for whom
• Where to read more: buying & selling, guides and La Jolla

Our main source is teaching material from the California Department of Real Estate (DRE), the state office that licenses agents. It is not advice on your own deal.

How dual agency usually happens

The DRE describes two common ways. First, the seller’s agent (the listing agent) also becomes the buyer’s agent. Second, two agents who work under the same company each act for a different side. In that case the company is the dual agent, and each agent works for that company.

The notice and your written consent

A disclosure is a written notice. The DRE says the company must tell both sides whether it works for the seller, the buyer, or both (a dual agent). Each side must agree to that. This rule covers selling, trading, or leasing for over one year a home with 1 to 4 units. It also covers selling a manufactured home.

The DRE describes a form called Disclosure Regarding Real Estate Agency Relationships, often called form AD. It names the three choices: the listing agent (works for the seller), the selling agent (works for the buyer), or a dual agent (works for both). Consent is in writing. It can be in a separate paper and confirmed no later than in the purchase contract.

If there is dual agency, the DRE says the buyer’s agent must tell both sides as soon as they reasonably can. The listing agent must also tell the seller as soon as they reasonably can. Ask your lawyer about timing in your deal.

What a dual agent may not share about price

California law (Civil Code section 2079.21, as the DRE explains it) sets two limits. A dual agent may not tell the buyer that the seller would take less than the asking price, unless the seller says yes in writing. And they may not tell the seller that the buyer would pay more than the offer, unless the buyer says yes in writing.

A dual agent still owes both sides a fiduciary duty, which means acting in good faith for each of them. The DRE lists great care, honesty, integrity and loyalty with both buyer and seller, plus other duties in the state form. Ask your lawyer about the full list.

The DRE also warns: if agents act for both buyer and seller, they must tell both sides in writing. Put key terms in writing.

The form that confirms who works for whom

The DRE describes a Confirmation of Agency Relationships. It is in the purchase contract or a separate form. It confirms in writing whether each agent works for the seller, the buyer, or both.

Once both sides get the notice and agree, the law assumes that is the agency they meant, unless proven otherwise. Agency comes from how people actually act. Who pays the agent does not, by itself, decide who the agent works for.

Common industry form names include AD and AC. Ask your lawyer and the company which current forms apply to you.

Where this fits with other guides

You can talk about fees with Weston directly.

Related guides

Talk with Weston about dual agency

Tell me where you are with a dual agency notice or consent form for a La Jolla or coastal San Diego home. I can walk you through it in plain words, and your lawyer can confirm it.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

Sources

• CA DRE — Reference Book Ch. 10 Agency · Ch. 20 Contract Provisions
• CA DRE — Disclosures in Real Property Transactions (RE 6)
• CA DRE — Licensee Advisory: Buyer Representation & Compensation
• CA DRE — Consumers hub · Homebuyers / borrowers
• HUD — Fair Housing Act overview
• Internal: buying & selling, guides, La Jolla