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A sheriff’s deed conveys property sold through a court-ordered sale, such as foreclosure or execution of judgment. It provides no warranties, only transferring whatever interest the owner had. Grant deeds are most common in California, quitclaim deeds clear clouds on title, and warranty deeds (rare in CA) provide full guarantees. Agents handling distressed properties should recognize sheriff’s deeds and their limitations.

Contracts for illegal activities (e.g., selling stolen property) are void from the beginning, having no legal effect. Voidable contracts are valid until rescinded, executory contracts are pending completion, and unenforceable contracts cannot be upheld in court due to technical issues (e.g., missing writing under Statute of Frauds). California agents must recognize void contracts and avoid participating in unlawful agreements.

The TRID rule, combining the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA), requires lenders to issue a Loan Estimate within three business days of application. This ensures borrowers understand loan terms, interest rates, and closing costs. California licensees should know TRID rules to guide buyers through financing disclosures.

Dual agency occurs when a licensee represents both parties in a transaction. In California, dual agency is legal but requires written informed consent from both parties due to potential conflicts of interest. General agency refers to ongoing management authority (e.g., property manager), special agency is for specific transactions, and subagency involves an agent assisting another broker’s client. Licensees must comply with DRE regulations and disclose dual agency to prevent legal and ethical violations.

The exclusive right-to-sell listing is the most common in California. It guarantees the broker a commission whether the property is sold by the broker, another broker, or the seller. Exclusive agency listings allow sellers to avoid paying if they sell it themselves, open listings allow multiple brokers, and net listings are legal but discouraged. California agents typically recommend exclusive right-to-sell agreements for maximum protection.