Sellers of one-to-four family residential housing, whether they be broker assisted or for sale by owner, are now required to provide a completed property condition disclosure statement to potential buyers under the Seller's Property Condition Disclosure Law, which took effect on March 1, 2002.
Sellers of one-to-four family residential housing, whether they be broker assisted or for sale by owner, are now required to provide a completed property condition disclosure statement to potential buyers under the Seller's Property Condition Disclosure Law, which took effect on March 1, 2002.
A completed form must be provided to the buyer before the buyer is bound by a contract of sale. While the seller must complete the disclosure form without assistance from the Real Estate Agent, agents have certain duties. Under the new law:
Listing agents must educate their seller clients about the law.
Buyer agents must educate their buyer client about the law.
Listing agents and Sub-Agents must educate customers about the law.
Other key provisions include:
Requirement that a copy of the completed form be attached to the contract .
If form isn't completed at contract the seller is required to pay $500 to buyer at closing. Disclosure of Real Estate Agency Relationship.
Disclosure of Real Estate Agency Relationship:
Types of Agency Relationships:
Buyer's Agent
Seller's Agent
Dual Agent
Cooperating Dual Agency
Each carries with it legal duties & responsibilities on the part of the broker/salesperson as well as the seller and buyer. After reading the explanations of agency relations below, you will be asked to acknowledge receipt of this form.
Seller's Agent: A seller's agent acts solely on behalf of the seller. A seller's agent has fiduciary duties to the seller which include reasonable care, undivided loyalty, confidentiality & full disclosure.
Seller's agents often work with buyers, but do not represent the buyer. However, in working with a buyer, a seller's agent must act honestly and fairly. A seller's agent must also disclose all information material to any transaction which is known by the broker.
Buyer's Agent: An agent can agree to act as an agent for the buyer. A buyer's agent acts solely on behalf of the buyer. A buyer's agent has fiduciary duties to the buyer which include reasonable care, undivided loyalty, confidentiality and full disclosure. Buyer's agents often work with sellers, but do not represent the seller. However, in working with a seller, a buyer's agent must act honestly and fairly.
Dual Agent: Dual agency occurs when a real estate firm representing the buyer shows the buyer properties where the firm has also agreed to be the agent of the seller. A real estate firm can be the agent of both the buyer & seller in a transaction with the knowledge and written consent of the buyer and seller.
A real estate firm acting as a dual agent must carefully explain to both buyer and seller that they are representing both parties and their fiduciary duties are different if they represent both parties.
When representing both seller and buyer, the agent must have the express permission of the respective party in order to disclose confidential information to the other party, such as price, terms and motivation to sell or buy.
Cooperating Dual Agency: Cooperating Dual Agency occurs where one individual of a real estate firm is representing a seller as a sub agent and a second individual from the same firm is representing a buyer as a buyer's agent on the same home being listed by another broker. Sellers should determine in what capacity an agent is working before disclosing any information.
Sellers of one-to-four family residential housing, whether they be broker assisted or for sale by owner, are now required to provide a completed property condition disclosure statement to potential buyers under the Seller's Property Condition Disclosure Law, which took effect on March 1, 2002. 
Other key provisions include: