In which type of residential transaction is a written disclosure of agency representation required?

In California, a written disclosure of agency representation is mandated for one to four unit residential transactions. This requirement is rooted in the California Civil Code, which aims to ensure transparency in real estate transactions. The concept of agency representation is crucial because it establishes who the agent represents in a transaction—whether it's the buyer, the seller, or both (dual agency).

In the context of residential transactions involving one to four units, such as single-family homes or small multifamily dwellings, the written disclosure protects all parties by clearly defining the nature of the agency relationship. This is essential for a well-informed transaction, as it helps parties understand whose interests are being prioritized within the deal.

For other types of transactions, such as commercial properties or rental agreements, different rules apply. Commercial transactions may not require the same agency disclosures, given the often greater legal understanding and sophistication of the parties involved. Similarly, while rental agreements do involve agency relationships, the specific statutory requirements for written disclosures differ compared to residential sales of one to four units. Thus, the correct answer highlights the specific scenario where California law emphasizes consumer protection through agency disclosure.