Dual‑Agent Broker in CA Omitted Buyer Divorce — SBA Delay. Options?
January 17, 2026
by an intermediary from University of Utah - David Eccles School of Business in Mountain View, CA, USA
Selling a business in California with a broker who is representing both sides. I recently discovered on my own (and haven’t told the broker or buyer yet) that one of the buyers is going through a divorce. This was never disclosed to me, and it’s now causing a 1–2 month delay in the SBA loan process.
I still want the deal to close, but I’m concerned that a material fact was withheld in a dual‑agency situation.
-Does a dual‑agent broker have a duty to disclose something like this?
-What recourse does a seller have when key information is omitted but they still want the transaction to proceed?
-Is it reasonable to ask the broker to adjust their commission or otherwise make things right?
Looking for guidance from anyone who has dealt with similar nondisclosure issues in SBA‑backed deals.
Thank you!
from Massachusetts Institute of Technology in Portland, OR, USA