CA Agency & contracts

California agency, contracts and conveyancing study cards

Work through California agency duties, contract essentials, and how deeds transfer ownership, then open each answer for the rule and the primary source behind it.

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Study the rule, not a guess.

Identify whose agent is involved in each scenario and when a written agreement is required. The agency relationship and the statute of frauds change the result in most of these cards.

Card 01

A California seller signs an exclusive authorization to sell that lets the broker earn a commission if the listing broker is the procuring cause, including under an exclusive-right-to-sell form. Which role does a salesperson subject to that listing generally owe a buyer?

A fiduciary duty to the buyer as the buy-side customer
A fiduciary duty to the seller under the agency relationship created by the listing
No duty to anyone until an offer is signed
An equal duty to both the seller and the buyer at all times

Reveal answer and explanation

Correct answer: A fiduciary duty to the seller under the agency relationship created by the listing

An exclusive-right-to-sell listing is an agency contract between the seller and the broker. In California, the listing establishes that the broker (and the salespersons working under the broker) act as the seller's agent and owe fiduciary duties to the seller. A buyer is a customer until a separate agency relationship is created. The California DRE materials describe the seller as the principal under a listing agreement for the sale of a single-family residence.

California Department of Real Estate — Agency Relationships in Real Estate Transactions — Seller as principal under a listing agreement for a single-family residence; buyer as customer in the absence of another agency relationship. Source checked 2026-09-05. Review by 2027-03-01.

Card 02

A California home buyer makes a written offer through a broker. Under the statute of frauds, which real estate sales contract generally must be in writing to be enforceable?

Only the purchase agreement signed by both parties
Only the seller's verbal acceptance
An agreement authorizing an agent to purchase real estate for a principal, and contracts for the sale of real property
No real estate agreement needs to be in writing in California

Reveal answer and explanation

Correct answer: An agreement authorizing an agent to purchase real estate for a principal, and contracts for the sale of real property

California's statute of frauds requires agreements authorizing or employing an agent to purchase or sell real estate, and contracts for the sale of real property, to be in writing and signed by the party to be charged. A purely verbal acceptance does not make an otherwise-required written contract enforceable.

California Civil Code — Statute of Frauds — Civil Code § 1624(4): agreements authorizing an agent or broker to purchase or sell real estate; and § 1624(3): contracts for sale of real property. Source checked 2026-09-05. Review by 2027-03-01.

Card 03

After close, a California buyer discovers a substantial defect the seller had been careful to conceal during showings. Which of these opportunities is most directly tied to the state's written transfer disclosure obligations?

The Transfer Disclosure Statement (TDS) requirement for the sale of a single-family residential property
The seller's obligation to repaint and restage the home
The broker's duty to arrange the appraisal
An automatic right to a refund of the commission

Reveal answer and explanation

Correct answer: The Transfer Disclosure Statement (TDS) requirement for the sale of a single-family residential property

For sales of single-family residential real property, California's Transfer Disclosure Statement (TDS) generally obligates the seller to disclose known material defects and conditions, and obligates the selling agent to deliver the statement to the prospective buyer. Concealing a known material defect implicates these disclosure duties.

California Civil Code — Transfer Disclosure Statement — Civil Code § 1102 et seq.: Transfer Disclosure Statement for single-family residential property sales. Source checked 2026-09-05. Review by 2027-03-01.

Card 04

A California seller signs and delivers a grant deed conveying a home to a buyer, but the deed is not recorded. Which statement about the transfer is most accurate at that moment?

The transfer is void because the deed was not recorded
Recording the deed is what transfers title; delivery alone is insufficient
Delivery of a validly executed deed generally transfers title, while recording protects priority against subsequent claimants
Only a court order can transfer title in California

Reveal answer and explanation

Correct answer: Delivery of a validly executed deed generally transfers title, while recording protects priority against subsequent claimants

In California a deed transfers title upon delivery with the intent to convey; recording is not generally what transfers title. Recording gives constructive notice and protects the grantee's priority against later claimants. This is why an unrecorded deed can still complete a transfer but leaves the grantee exposed to conflicting claims.

California Civil Code — Transfer of real property by deed — Civil Code § 1055: a grant of an estate in real property passes title upon delivery of the deed with intent to convey; recording affects notice and priority. Source checked 2026-09-05. Review by 2027-03-01.