TYPES OF REAL ESTATE LICENSE HOLDERS:
- A BROKER is responsible for all brokerage actvites, including acts performed by sales agents sponsored by the broker.
- A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):
- Put the interests of the client above all others, including the broker’s own interests;
- Inform the client of any material informaton about the property or transacton received by the broker;
- Answer the client’s questons and present any ofer to or counter-ofer from the client; and
- Treat all partes to a real estate transacton honestly and fairly.
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a writen listng to sell or property management agreement. An owner’s agent must perform the broker’s minimum dutes above and must inform the owner of any material informaton about the property or transacton known by the agent, including informaton disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a writen representaton agreement. A buyer’s agent must perform the broker’s minimum dutes above and must inform the buyer of any material informaton about the property or transacton known by the agent, including informaton disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH – INTERMEDIARY: To act as an intermediary between the partes the broker must frst obtain the writen agreement of each party to the transacton. The writen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligatons as an intermediary. A broker who acts as an intermediary:
- Must treat all partes to the transacton impartally and fairly;
- May, with the partes’ writen consent, appoint a diferent license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructons of each party to the transacton.
- Must not, unless specifcally authorized in writng to do so by the party, disclose:
- that the owner will accept a price less than the writen asking price;
- that the buyer/tenant will pay a price greater than the price submited in a writen ofer; and
- any confdental informaton or any other informaton that a party specifcally instructs the broker in writng not to disclose, unless required to do so by law.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacton without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner frst.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:
- The broker’s dutes and responsibilites to you, and your obligatons under the representaton agreement.
- Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
LICENSE HOLDER CONTACT INFORMATION: This notce is being provided for informaton purposes. It does not create an obligaton for you to use the broker’s services. Please acknowledge receipt of this notce below and retain a copy for your records.