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12 Golden Gate U. L. Rev. 379 (1982)
Dual Agency in Residential Real Estate Brokerage: Conflict of Interest and Interests in Conflict

handle is hein.journals/ggulr12 and id is 393 raw text is: COMMENTS DUAL AGENCY IN RESIDENTIAL REAL ESTATE BROKERAGE: CONFLICT OF INTEREST AND INTERESTS IN CONFLICT The most critical issue in today's real estate transactions is the inherent conflict of interest created by dual representation by the real estate broker in the usual real estate transaction. The problem is endemic in the common transaction 1 I. INTRODUCTION The nature of the agency relationships between residential real estate brokers and their clients has always been somewhat paradoxical, very problematic, and fraught with potential fraud, malfeasance, and serious conflicts of interest.2 Unsophisticated vendors and purchasers of residential property rely heavily on the expertise of real estate brokers in matters of price, terms, financing, and the condition and habitability of the real property in question despite the fact that conflicting loyalties and objec- tives commonly exist between the real estate broker and the bro- ker's clients. The broker's role is no longer merely that of a salesperson 1. 1 H. MULLRR & M. STARR, CURRENT LAW O CALIFORNIA REAL EsTAT § 4:18, at 17 (Supp. 1981). 2. Litchfield, Unprofessional Conduct by Real Estate Brokers: Conflict of Interest and Conflict in the Law, 11 PACIFIC L.J. 821 (1980). Litchfield quotes Justice Cardozo in Roman v. Lobe, 243 N.Y. 51, 54, 152 N.E. 461, 462, (1926): The real estate broker is brought by his calling into a relation of trust and confidence. Constant are the opportu- nities by concealment and collusion to extract illicit gains. We know from our judicial records that the opportunities have not been lost. See also Comment, A Reexamination of the Real Estate Broker-Buyer-Seller Relationship, 18 WAYNE L. Rzv. 1343 (1972).