R-B Realty

DISCLOSURE REGARDING AGENCY RELATIONSHIP(S) (As required by Oregon Revised Statutes Chapter 696)

An agency relationship arises whenever two persons agree that one is to act on behalf of the other and in accordance with the other's directions. The creation of an agency relationship imposes certain legal duties on the agent.

Before a seller or buyer enters into a discussion with a real estate licensee regarding a real property transaction, the seller and buyer should each understand what type of agency relationship or representation the buyer and the seller may have with each agent in that transaction.

SELLER'S AGENT

An agent who acts under a listing agreement with the seller acts as the agent for the seller only. A seller's agent has affirmative obligations (under 1993 Oregon laws Ch. 570 Sec. 3):

• To the seller: The fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accounting in dealings with the seller.
• To the buyer and to the seller: Honest dealings and disclosure.

BUYER'S AGENT

A real estate licensee other than the seller's agent can agree with the buyer to act as the agent for the buyer only. In this situation, the buyer's agent is not representing the seller, even if the buyer's agent is receiving compensation for services rendered, either in full or in part, from the seller or through the seller's agent. A buyer's agent has the affirmative obligations (under 1993 Oregon laws Ch. 570 Sec. 4):

• To the buyer: The fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accounting in dealings with the buyer.
• To the buyer and to the seller: Honest dealing and disclosure.

IN-COMPANY SALES

• A licensee, acting either alone or through one or more licensees within the same real estate organization, may give limited representation to both the seller and the buyer in a real estate transaction.
• In an in-company agreement, the agent acting as in-company agent has the following affirmative obligations to both the seller and the buyer:
  • Loyalty, obedience, disclosure, confidentiality and accounting in dealings with both the seller and the buyer. HOWEVER, IN REPRESENTING BOTH THE SELLER AND THE BUYER, THE LICENSEE SHALL NOT, WITHOUT THE EXPRESS WRITTEN PERMISSION OF THE RESPECTIVE PERSON, DISCLOSE TO THE OTHER PERSON:
    • That the seller will accept a price lower than or terms less favorable than the listing price or terms; or
    • That the buyer will pay a price higher than or terms more favorable than the offering price and terms; or
    • Other than price and terms, confidential information specifically designated as such in writing by the buyer or seller as set out on the front of disclosure form or attached to it.
  • Reasonable care and diligence
  • Honest dealing.

   

SELLERS AND BUYERS

None of the foregoing duties of the agent in a real estate transaction relieves a seller or a buyer from the responsibility to protect the seller's or buyer's own interests respectively. The seller and the buyer should carefully read all agreements to assure that the agreements adequately express the seller's or the buyer's understanding of the transaction.

THE ACTS OF THE AGENTS MAY CAUSE LEGAL LIABILITY TO THE PRINCIPALS. A REAL ESTATE LICENSEE IS QUALIFIED TO ADVISE ON REAL ESTATE; IF YOU DESIRE LEGAL ADVICE, CONSULT A LAWYER.