What is the legal test for determining whether a real estate broker has a statutory duty?

California, United States of America


The following excerpt is from Chapete Props., Inc. v. Marcus & Millichap Real Estate Inv. Serv., Inc., B231440 (Cal. App. 2012):

"In making its determination of duty in the real estate transactions context, a court will take the following factors into account: 'Real estate brokers are subject to two sets of duties: those imposed by regulatory statutes, and those arising from the general law of agency. [Citation.]' [Citation.]" (Padgett v. Phariss (1997) 54 Cal.App.4th 1270, 1279.) If a "statutory duty is not alleged, then a plaintiff may seek to derive the defendant's duty from the general law of agency, i.e., from the agreement between the principal and agent." (Ibid.)

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