Administrative Procedures Act Coordinator Anita R. Burt presents proposed rules a:t a rulemaking hearing.
Administrative Procedures Act Coordinator Anita R. Burt presents proposed rules a:t a rulemaking hearing. |
At its June meeting, the Real Estate Commission adopted rules establishing a procedure which real estate brokers and salesmen must follow in disclosing to consumers whom they represent in real estate sales transactions. The rules will become effective July 1, 1995, subject to approval by the state's Rules Review Commission. |
In general, the rules are designed to inform prospective buyers and sellers of the duties owed to them by real estate brokers and salesmen in various agency relationships (seller agency, buyer agency, dual agency), and to provide meaningful disclosure to buyers when a broker or salesman with whom they are working is representing the seller's interests and vice versa.
The approach to disclosure adopted by the Commission is also designed to minimize the paperwork required of agents. Information describing your duties and relationships with buyers and sellers is to be included in listings and other agency agreements.
The only new form is one which the Commission has prescribed for use by an agent who is representing the seller, but working directly with a buyer. The seller's agent must review this disclosure form with the buyer and have him or her sign it.
If approved by the Rules Review Commission, the new rules will be taught this year in the Commission's continuing education Update Course, and copies of the Disclosure Form and "Description of Agent Duties and Relationships" will appear in a future issue of your Real Estate Bulletin.
Following is a summary of some of the highlights of the new rules:
Agency Agreements
All listing, buyer agency, dual agency and other agency agreements must (1) be in writing; (2) contain a "Description of Agent Duties and Relationships" prescribed by the Commission; and (3) contain a statement prescribed by the Commission indicating whether there is a possibility that you or your firm may be representing both sellers and buyers in the transaction (i.e., acting as a dual agent),
Offer and Sales Contracts
All preprinted offer and sales contract forms must contain a provision identifying each agent and firm involved in the transaction and whom they represent.
Agency Disclosure
In all real estate sales transactions where you are acting as agent (or subagent) of a seller, you must disclose this fact to prospective buyers at your first substantial contact with them. This disclosure must be made using a form prescribed by the Com
mission which the buyer will sign as acknowledgement of receipt.
Likewise, when you are acting as agent of a buyer, you must disclose this fact to the seller or the seller's agent upon your initial contact with them. You must then follow up with written confirmation to the seller (or agent) which may be included in the
buyer's offer to purchase.