I. Seller’s Broker: A broker who lists a
property, or a salesperson who is licensed to the listing broker, represents the Seller
and acts on behalf of the Seller. A broker or salesperson working with a Buyer may also
act as a subagent of the Seller, in which case the Buyer is the broker’s customer and
is not represented by that broker. A Sellers broker owes to the Seller the fiduciary
duties described below.(2) The broker must also disclose to the Buyer any material facts
of which the broker is aware that could adversely and significantly affect the Buyers use
or enjoyment of the property. If a broker or salesperson working with a Buyer as a
customer is representing the Seller, he or she must act in the Seller(s)’ interests
and must tell the Seller(s) any information disclosed to him/her. In that case, the Buyer
will not be represented and will not receive advice and counsel from the broker or
salesperson.
II. Buyer’s Broker: A Buyer may enter into an
agreement for the broker or salesperson to represent and act on behalf of the Buyer. The
broker may represent the Buyer only, and not the Seller, even if s/he is being paid in
whole or in part by the Seller. A Buyer’s broker owes to the Buyer the fiduciary
duties described below.(2) The broker must disclose to the Buyer any material facts of
which the broker is aware that could adversely and significantly affect the Buyers use or
enjoyment of the property.
Ill. Dual Agency - Broker Representing both Seller and
Buyer: Dual agency occurs when one broker or salesperson represents both parties to a
transaction, or when two salespersons licensed to the same broker each represent a party
to the transaction. Dual agency requires the informed consent of all parties, and means
that the broker and salesperson owe the same duties to the Seller and the Buyer. This role
limits the level of representation the broker and salespersons can provide, and prohibits
them from acting exclusively for either party. In a dual agency, confidential information
about price, terms and motivation for pursuing a transaction will be kept confidential
unless one party instructs the broker or salesperson in writing to disclose specific
information about him or her. Other information will be shared. Dual agents may not
advocate for one party to the detriment of the other.(3)
Within the limitations described above, dual agents owe to
both Seller and Buyer the fiduciary duties described below.(2) Dual agents must disclose
to Buyers any material facts of which the broker is aware that could adversely and
significantly affect the Buyer’s use or enjoyment of the property.
IV. Nonagent: A broker or salesperson may perform
services for either party as a nonagent, if that party signs a nonagency services
agreement. As a nonagent the broker or salesperson facilitates the transaction, but does
not act on behalf of either party. THE NONAGENT BROKER OR SALESPERSON DOES NOT OWE ANY
PARTY ANY OF THE FIDUCIARY DUTIES LISTED BELOW, UNLESS THOSE DUTIES ARE INCLUDED IN THE
WRITTEN NONAGENCY SERVICES AGREEMENT. The nonagent broker or salesperson owes
only those duties required by law or contained in the written nonagency services
agreement.
ACKNOWLEDGMENT: I/We acknowledge that I/We have been
presented with the above-described options. I/We understand that Buyers who have not
signed a Buyer representation contract or nonagency services agreement are not represented
by the broker/salesperson and information given to the broker/salesperson will be
disclosed to the Seller. I/We understand that written consent is required for a dual
agency relationship. This is a disclosure only, NOT a contract for representation.
| __________________________ |
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| Seller |
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Buyer |
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| ____________________________ |
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| Seller |
Date |
Buyer |
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