====== Responsibilities of Agent to Non-Client Third Parties ====== Real estate agents owe limited duties to parties who are not their principals. ===== General Duties to Third Parties ===== * Honesty and fair dealing * No misrepresentation or fraud * Disclosure of known material facts affecting value or safety * Compliance with real estate law ===== Disclosure of Material Facts ===== * Must disclose known material defects * Applies even if agent represents the opposite party * Includes property condition and legal issues * Cannot conceal or misstate facts ===== No Fiduciary Duty ===== * No duty of loyalty to non-clients * No duty to protect confidential information of non-clients * No obligation to advise on price or negotiation strategy ===== Property Condition Disclosure ===== * Use of statutory disclosure forms when required * Transfer Disclosure Statement (TDS) * Natural Hazard Disclosure (NHD) * Known defects must be revealed ===== Duty to Avoid Negligence ===== * Exercise reasonable care * Avoid misleading statements * Verify information when necessary ===== Dual Agency Considerations ===== * Must treat both parties honestly * Cannot favor one party unfairly * Must disclose agency relationship clearly ===== Consequences of Breach ===== * Civil liability * Disciplinary action by the DRE * Possible loss of license