Here’s a complete list of questions about the “Agency” section of the Residential Purchase Agreement (RPA) — especially the California Association of REALTORS® version — along with clear explanations for each.
🧑⚖️ Agency Section of the RPA – Common Agent-to-Broker Questions (with Explanations)
- What is the “Agency” section of the RPA?
Explanation:
This section discloses the type of agency relationship between the buyer, seller, and the brokers involved. It satisfies the legal requirement to disclose agency roles in writing, usually using CAR Form AD (Disclosure Regarding Real Estate Agency Relationship).
- Is the Agency Disclosure (Form AD) required on every transaction?
Explanation:
Yes. California law (per Civil Code §2079.13–2079.24) requires both agents to disclose their agency relationships in writing as early as practical — and it must be confirmed again in the RPA.
- Who do we represent in this transaction — the buyer, the seller, or both?
Explanation:
Agents ask this when clarification is needed. The broker must confirm whether the agent represents:
- Only the buyer
- Only the seller
- Both (dual agency) — which requires disclosure and informed written consent from both parties
- What is dual agency, and is it legal in California?
Explanation:
Dual agency is when one brokerage represents both the buyer and seller in the same transaction. It is legal in California but must be disclosed, and both parties must consent in writing.
- Can an agent represent both parties without being a dual agent?
Explanation:
No. If the same brokerage represents both sides, it is considered dual agency, even if different salespersons handle each party.
- What do we check in the Agency Confirmation section of the RPA?
Explanation:
The section has checkboxes to confirm whether:
- The listing agent/broker represents the seller only
- The selling agent/broker represents the buyer only
- Either broker represents both parties
Agents must carefully select the correct boxes to reflect the actual relationship.
- What if I accidentally checked the wrong box in the agency section?
Explanation:
That’s a serious issue. Brokers usually advise correcting it immediately via an amendment or addendum to clarify agency relationships, to avoid legal risk and potential DRE violations.
- When do we need the seller and buyer to sign Form AD?
Explanation:
- Seller: Before or at the time of listing
- Buyer: Before preparing or presenting an offer
This satisfies the statutory requirement for early disclosure.
- Can I change the agency relationship during escrow?
Explanation:
Only with written consent from all parties. Changing representation mid-transaction could create a conflict of interest and must be handled carefully, often with broker and legal input.
- Do both the buyer and seller get copies of the agency disclosure?
Explanation:
Yes. Each party must receive and sign a copy of the Agency Disclosure (Form AD), and the disclosure must be confirmed in the RPA.
- What if another agent from my office represents the other party — is that dual agency?
Explanation:
Yes. Even if two different agents are involved, if they’re under the same brokerage license, it’s legally dual agency.
- Do buyers and sellers understand what dual agency means?
Explanation:
Not always. Brokers often encourage agents to explain it clearly: the agent can’t favor one party over the other, and confidential information cannot be shared between the parties.
- Can a dual agent negotiate price or repairs for both sides?
Explanation:
A dual agent can facilitate negotiations but cannot advocate or advise one party against the interests of the other. This limits how much guidance the agent can provide.
- Are there risks to being a dual agent?
Explanation:
Yes. Dual agency can lead to conflicts of interest, reduced fiduciary duty, and legal liability if not properly disclosed or managed. Brokers often advise caution.
- Is agency disclosure required in commercial transactions too?
Explanation:
Yes, if it involves a residential 1–4 unit property (including some mixed-use). Otherwise, it depends on the type of property and relationship.
📄 Summary of Agency Section Requirements in the RPA
| Requirement | Who It Applies To | Form/Section |
| Agency disclosure | All real estate agents in CA | CAR Form AD |
| Agency confirmation | Required in every RPA | Section 3 of RPA |
| Dual agency consent | If broker represents both parties | Form DA (Dual Agency) or RPA boxes |
| Early disclosure | Must be made before offer/listing | CAR AD + RPA confirmation |
Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.
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