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California Supreme Court ruling could have far-reaching implications for brokerages

Judicial body ruled buyer and seller agents working for same firm owe fiduciary responsibility to each other’s clients

Chris Cortazzo and the house at 33618 Pacific Coast Highway
Chris Cortazzo and the house at 33618 Pacific Coast Highway

From the Los Angeles website: The California Supreme Court ruled Monday that a real estate brokerage representing both the buyer and seller in a deal owes the same fiduciary responsibilities to each party, potentially setting a significant precedent for how information is shared in so-called “dual-agency transactions.”

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In a unanimous decision, the court ruled in Horiike v. Coldwell Banker that a when an agent representing a seller is working for the same firm as the agent representing the buyer, they become an “associate licensee” and must properly investigate and disclose all important information related to the transaction. [more]

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