California real estate disclosure laws California Real Estate Disclosures | Page 38

(c) Where the selling agent does not deal on a face-to-face basis with the
seller, the disclosure form prepared by the selling agent may be furnished to
the seller (and acknowledgment of receipt obtained for the selling agent
from the seller) by the listing agent, or the selling agent may deliver the
disclosure form by certified mail addressed to the seller at his or her last
known address, in which case no signed acknowledgment of receipt is
required.
(d) The selling agent shall provide the disclosure form to the buyer as soon
as practicable prior to execution of the buyer’s offer to purchase, except that
if the offer to purchase is not prepared by the selling agent, the selling agent
shall present the disclosure form to the buyer not later than the next business
day after the selling agent receives the offer to purchase from the buyer.”
Should either the buyer or seller refuse to sign the required
acknowledgement of receipt of the disclosure form, the broker/agent
representing that principal must prepare, sign, and date a written declaration
of the facts surrounding the refusal.
Neither the payment of compensation nor the obligation of the buyer or
seller to compensate the broker(s)/agent(s) will determine a particular
agency relationship. Agency relationship(s) are factual and arise out of the
conduct of the parties. However, the disclosure of and consent to the
described agency relationship(s) establishes a rebuttable presumption of the
agency relationship(s) which are intended by the parties.
A dual agent (where the same broker/agent represents both the seller and the
buyer) is expressly prohibited from discussing without the prior written
consent of the appropriate principal any asking or offering price (e.g., that
the seller would take less or the buyer would pay more than that which has
been set forth in the written listing agreement or the written offer to
purchase). The parties may agree in writing to change the agency
relationship(s) prior to the commencement of the real estate transaction.
(CAL. CIV. § 2079.13 et. seq.)

C. Disclosure of the Negotiability of Real Estate Commissions
An agreement (such as a listing or sales agreement) which establishes or
increases the amount or rate of a real estate broker’s/agent’s compensation
for the sale of residential real property of not more than four units or a
mobilehome must contain the following disclosure in not less than 10-point
boldface type:
Notice: The amount or rate of real estate commissions is not
fixed by law. They are set by each broker individually
and may be negotiable between the seller and broker.

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