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ARTICLE · 04 JANUARY 2017

Horiike v. Coldwell Banker - Dual Agent Liability

Lewis Brisbois Bisgaard & Smith LLP
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The California Civil Code permits an agent to represent both the buyer and seller in a real estate transaction, so long as the agent receives consent from both parties after full disclosure.

United StatesLitigation, Mediation & Arbitration
Jeffry Miller
Jeffry Miller
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The California Civil Code permits an agent to represent both the buyer and seller in a real estate transaction, so long as the agent receives consent from both parties after full disclosure. (Civ. Code, §§ 2079.14, 2079.16.) In this dual agency relationship, the agent owes fiduciary duties to both the buyer and the seller. But what of the salespeople, or "associate licensees" who carry out the transaction on the agent's behalf? On November 21, 2016, the California Supreme Court held in Horiike v. Coldwell Banker (Nov. 21, 2016, S218734) __ Cal.App.5th __ [2016 Cal.Lexis 9428] (Horiike) that a dual agent's associate licensee owes an equivalent fiduciary duty of "utmost care, integrity, honesty, and loyalty" to both the buyer and the seller regardless of whom he or she personally represents.

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