Commission amends rules

Following a rulemaking hearing November 15 at the Real Estate Commission office, the Commission amended its rules on agency agreements and disclosure (Rule A.0104) to allow brokers and salespersons to begin working as buyers' agents without a written buyer agency agreement under the following conditions:

1. The broker or salesperson must, from the inception, clearly disclose to the buyer that he or she is the buyer's agent.
2. The buyer agency agreement must be in writing if it binds the buyer for a period of time or restricts the buyer from working with other agents (or without an agent).
3. The agent must obtain a written buyer agency agreement not later than the time an offer to purchase is presented to the seller (or seller's agent).

In addition, brokers or salespersons must, at the point of first substantial contact, provide and review with their client (buyer or seller) a brochure (available from the Commission) on agency relationships; or if the contact is by telephone, fax, etc., must mail or transmit the brochure will also be held responsible for assuring that brokers and salespersons employed at their offices adhere to all agency agreement and disclosure requirements (Rule A.0110).

The Commission also amended its rules to permit private real estate schools greater flexibility in facilities used for classroom purposes (Rule C.0207) and to require continuing education course sponsors to give prospective students a description of their cancellation and refund policies (Rule E.0505).

If approved by the General Assembly, these changes will become effective July 1, 2001.

For a complete text of the amended rules, contact the Commission office.