Brokerage Relationships

Jody O'Brien

History & Background

1980’s 1983 FTC study of Buyers and Sellers to

determine if the consumer realized that the real estate agents worked for the Sellers

71% of the Buyers thought the selling agent worked “for” them

74% of the Sellers thought the agent worked “for” the Buyer

1990’s Massachusetts enacts mandatory agency

disclosure 1991 (NAR recommendations 1991: timely, written, and meaningful disclosure)

Originally targeted toward Buyers (Seller agency disclosure not mandated until 1993)

1993 Form changes to allow Buyer Agency information, disclosure and choice

Public awareness of representation increases

Demand for Buyer agency increases

2000’s Massachusetts adopts Designated Agency Change in Disclosure Form

Massachusetts Mandatory Licensee – Consumer Relationship Disclosure Form

Consent for Designated and Dual Agency Required in writing

Facilitation defined Sub Agency requires written acknowledgment of

Vicarious Liability and......

2010 Agency Disclosure Investigation

When would you disclose? What would relationship would you select?

Mary has just driven by your new listing and she is very excited. It is exactly what she is looking for. When she calls the office she finds out you are in. She will be right over. When would you disclose?What relationship would you select?

Bob is standing in front of the office drooling over the Broker Owners new listing in the window display. You go out side and comment, “It is a beauty! Do you want some more info?” Bob shakes his head and follows you in. When would you disclose?What relationship would you select?

Current Agency Disclosure Form

Disclosure to a Buyer of Seller Agency

Types of Agency

Seller Agency Traditional Agency Designated Agency Sub-Agency

Consent from Seller Specific Language

Buyer Agency Traditional Agency Designated Agency

Types of Agency

Facilitation Buyer or Seller Duty to accountability Confidentiality “unless otherwise agreed”

Dual Agency Consent

Specific language Notice

Designated Agency Consent

Specific Language Notice

Policy, Issues and Risk

Agency position applies to all agents within a company

Forms available and easy to use Designated Agency Practices

Separation of folders Privacy of documents Privacy of information

Jody O’BrienThe RE/Education Company

Committed to Professionalism in Real Estate through Education

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