January 4th, 2016 at 3:29 pm
Answer: No, no, no. Under one scenario, Scenario A, you can voluntarily create an agency relationship with Mr. X which generally includes helping him rent this property, showing him comps, and if this property doesn’t work out, helping him rent another property. In Scenario A, you are acting as a dual agent. Under Agency Confirmation (paragraph 44) in the C.A.R. Residential Lease Agreement (LR), you should check the box that you are representing “both the Landlord and Tenant.”
Alternatively, under Scenario B, you can just facilitate the renting of the property to Mr. X as the lease listing agent only. Do not act as Mr. X’s agent. Under Scenario B, you don’t have to worry about protecting Mr. X. After all,? he comes into these lease negotiations with the majority of landlord-tenant laws already stacked in his favor. For Agency Confirmation, check the box in the LR stating that you are representing the “Landlord exclusively.”
You will receive the same commission in Scenario A or B under your Lease Listing Agreement which states in part: “Owner agrees to pay to Broker [compensation] for services, irrespective of agency relationships” (emphasis added).? Yet, by? opting for? Scenario B, you will substantially minimize our exposure to potential liability because Mr. X cannot hold us to the? higher standard of? care of a tenant’s fiduciary agent.
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