California Codes

Cal. Civil Code § 2079.16 (2026)

Duty to Prospective Purchaser of Real Property

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The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:

DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)

When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.

SELLER’S AGENT

A Seller’s agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller’s agent or a subagent of that agent has the following affirmative obligations:
To the Seller:

A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:

(a)Diligent exercise of reasonable skill and care in performance of the agent’s duties.

(b)A duty of honest and fair dealing and good faith.

(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.

An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.

BUYER’S AGENT

A Buyer’s agent can, with a Buyer’s consent, agree to act as agent for the Buyer only. This includes a Buyer’s agent under a buyer-broker representation agreement with the Buyer. In these situations, the agent is not the Seller’s agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the Buyer:

A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:

(a)Diligent exercise of reasonable skill and care in performance of the agent’s duties.

(b)A duty of honest and fair dealing and good faith.

(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.

AGENT REPRESENTING BOTH SELLER AND BUYER

A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.

In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:

(a)A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either the Seller or the Buyer.

(b)Other duties to the Seller and the Buyer as stated above in their respective sections.

In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer’s or Seller’s financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller’s willingness to accept a price less than the listing price or the Buyer’s willingness to pay a price greater than the price offered.

SELLER AND BUYER RESPONSIBILITIES

Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agent’s role.

The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect their own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.

If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.

Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.

Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.

This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.

Agent(date)

Buyer/Seller(date)

(Signature)

Salesperson or Broker Associate, if any(date)

Buyer/Seller(date)

(Signature)

(Signature)

Notes of Decisions
Cited in 10 cases (2 in the last 5 years), 1998–2023 · leading case: Holmes v. Summer, 188 Cal. App. 4th 1510 (Cal. Ct. App. 2010).
Holmes v. Summer, 188 Cal. App. 4th 1510 (Cal. Ct. App. 2010). · cites it 3× “” (Civ. Code, § 2079.16.) So, the portion of section 2079.”
Beaver v. Tarsadia Hotels, 29 F. Supp. 3d 1294 (S.D. Cal. 2014). · cites it 2× “’ Cal. Civ.Code § 2079.16.”) Plaintiffs allege that Playground had a duty to disclose to buyers all facts affecting the value or desirability of the Units as well as duties of honesty, fair dealing and good faith to all purchasers.”
Assilzadeh v. California Fed. Bank, 82 Cal. App. 4th 399 (Cal. Ct. App. 2000). “” Civil Code section 2079.16 requires written confirmation of a dual agent relationship to be contained in the purchase or sale contract or in a separate writing.”
Brown v. FSR Brokerage, Inc., 62 Cal. App. 4th 766 (Cal. Ct. App. 1998). “” The referenced provision, Civil Code section 2079.16, provides: “The disclosure form required by Section 2079.”
Brooks v. Tarsadia Hotels, No. 3:18-cv-02290 (S.D. Cal. Dec. 5, 2019). · cites it 4× “) This claim is based on 11 breach of the duty under California Civil Code § 2079.16 which states that a seller’s 12 agent has a “duty to disclose all facts known to the agent materially affecting the value or 13 desirability of the property that are not known to, or within the…”
Mazgani v. S.B.S. Trust Deed Network, No. B252174 (Cal. Ct. App. Feb. 1, 2016). · cites it 2× “We assume that the intended reference is to Civil Code section 2079.16. 7 California Real Estate 4th, section 368: “The agent owes a fiduciary duty to disclose to the principal any compensation or benefit that the agent will receive from the transaction.”
Anderson v. Coldwell Residential Brokerage, No. B249615 (Cal. Ct. App. Nov. 21, 2014). · cites it 2× “(Civ. Code, § 2079.16.) The agent’s duties do not relieve buyers and sellers from the duty to protect their own interests by consulting professionals and “carefully read[ing] all agreements to assure that they adequately express [the parties’] understanding of the transaction.”
Taigod 3 v. Mandarin Realty 1 Corp., No. B298793 (Cal. Ct. App. Mar. 10, 2021). “30 We recognize that Wan and Mandarin, acting as the dual agent of Winners and Taigod in the purchase transaction, owed fiduciary duties to Taigod that they did not owe to Bowling Center.”
Barnett v. Garrigan, No. 3:20-cv-02585 (N.D. Cal. June 29, 2023). “” See Cal. Civ. Code § 2079.16 . That common law duty, “unchanged by” and “substantially more extensive than” the statutory visual inspection, requires “the highest good faith and undivided service and loyalty.”
Getsen Acquisitions v. Zapf, No. D062874 (Cal. Ct. App. July 31, 2014). “Regardless what other "reports" Duden may have had access to, Zapf, as the seller's real estate agent, owed Getsen, as the buyer, "the affirmative duties of care, honesty, good faith, fair dealing and disclosure, as reflected in Civil Code section 2079.16, as well as such other…”
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