disclosure_of_agency
Table of Contents
Disclosure of Agency
California law requires real estate agents to disclose agency relationships in a timely manner.
Purpose of Agency Disclosure
- Inform parties whom the agent represents
- Avoid confusion and conflicts of interest
- Ensure informed consent
- Required by statute
When Disclosure Is Required
- As soon as practicable
- Before the principal enters into a contract
- Prior to writing or presenting an offer, when possible
Agency Disclosure Form
- Disclosure Regarding Real Estate Agency Relationships (AD)
- Must be provided to:
- Seller
- Buyer
- Requires written acknowledgment
- Disclosure does not create agency by itself
Types of Disclosure
Seller Disclosure
- Broker must disclose representation to seller
- Explains seller’s agent duties
- Signed at listing or as soon as practicable
Buyer Disclosure
- Broker must disclose representation to buyer
- Explains buyer’s agent duties
- Signed prior to entering into an agreement
Dual Agency Disclosure
- Must be disclosed to both buyer and seller
- Requires informed written consent from both
- Failure to disclose may void commission rights
Disclosure to Third Parties
- Agents must disclose whom they represent
- Required at first substantive contact
- Applies to open houses and negotiations
Consequences of Failure to Disclose
- Loss of commission
- Disciplinary action by DRE
- Civil liability
- Possible rescission of contract
disclosure_of_agency.txt · Last modified: by reidjs