Brokerage Relationships in Real Estate Transactions Act | KS Real Estate Commission
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Statement of Representation
Do not assume that an agent is acting on your behalf, unless you have signed a contract with the agent's firm to represent you. If you have not entered into a written agency agreement, you are considered to be a customer rather than a client. As a customer, you represent yourself. Any information that you, the customer, disclose to the agent representing another party will be disclosed to that other party. Even though licensees may be representing other parties, they are obligated to treat you honestly, give you accurate information, and disclose all known adverse material facts.
Duties of Seller's Agent, Buyer's Agent and Transaction Broker
The Kansas Brokerage Relationships in Real Estate Transactions Act (referred to as BRRETA II) became effective on October 1, 1997.
Kansas law requires real estate licensees to provide the
BRRETA brochure
about brokerage relationships to prospective sellers and buyers at the first practical opportunity. See
K.S.A. 58-30,110
and
K.A.R. 86-3-26
for more information.
The following summary describes a seller's agent, a buyer's agent, and a transaction broker.
Seller's Agent
The seller's agent represents the seller only, so the buyer may be either unrepresented or represented by another agent.
The seller's agent is responsible for performing the following duties:
promoting the interests of the seller with the utmost good faith, loyalty, and fidelity
protecting the seller's confidences, unless disclosure is required
presenting all offers in a timely manner
advising the seller to obtain expert advice
accounting for all money and property received
disclosing to the seller all adverse material facts about the buyer that the agent
knows
disclosing to the buyer all adverse material facts actually known by the agent, including:
environmental hazards affecting the property that are required to be disclosed
the physical condition of the property
any material defects in the property or in the title to the property
any material limitation on the seller's ability to complete the contract
The seller's agent has no duty to:
conduct an independent inspection of the property for the benefit of the buyer
independently verify the accuracy or completeness of any statement by the seller or any qualified third party
Buyer's Agent
The buyer's agent represents the buyer only, so the seller may be either unrepresented or represented by another agent.
The buyer's agent is responsible for performing the following duties:
promoting the interests of the buyer with the utmost good faith, loyalty, and fidelity
protecting the buyer's confidences, unless disclosure is required
presenting all offers in a timely manner
advising the buyer to obtain expert advice
accounting for all money and property received
disclosing to the buyer all adverse material facts about the property that the agent knows
disclosing to the seller all adverse material facts actually known by the agent, including all material facts concerning the buyer's financial ability to perform the terms of the transaction
The buyer's agent has no duty to:
conduct an independent investigation of the buyer's financial condition for the benefit of the seller
independently verify the accuracy or completeness of statements made by the buyer or any qualified third party
Transaction Broker
The transaction broker is not an agent for either party, so the transaction broker does not advocate the interests of either party.
The transaction broker is responsible for performing the following duties:
exercising reasonable skill and care
presenting all offers in a timely manner
advising the parties regarding the transaction
suggesting that the parties obtain expert advice
accounting for all money and property received
keeping the parties fully informed
assisting the parties in closing the transaction
disclosing to the buyer all adverse material facts actually known by the transaction broker, including:
environmental hazards affecting the property that are required to be disclosed
the physical condition of the property
any material defects in the property or in the title to the property
any material limitation on the seller's ability to complete the contract
disclosing to the seller all adverse material facts actually known by the transaction broker, including all material facts concerning the buyer's financial ability to perform the terms of the transaction
The transaction broker protects the confidences of both parties.
If the transaction is the sale of one to four residential units or the sale of agricultural real estate, the following information shall not be disclosed by a transaction broker without the consent of all parties:
that a buyer is willing to pay more than the purchase price offered for the property
that a seller is willing to accept less than the asking price for the property
what the motivating factors are for any party buying or selling the property
that a seller or buyer will agree to financing terms other than those offered; or
any information or personal confidences about a party to the transaction which might place the other party at an advantage over the party unless the disclosure is required by law or failure to disclose such information would constitute fraudulent misrepresentation.
If the transaction is the sale or lease of commercial property or residential property of more than four units, the transaction broker shall not disclose any information or personal confidences about a party to the transaction which might place the other party at an advantage unless failure to disclose such information would constitute fraudulent misrepresentation. The transaction broker may disclose the following information unless prohibited by the parties:
that a buyer or tenant is willing to pay more than the purchase price or lease rate offered for the property
that a seller or landlord is willing to accept less than the asking price or lease rate for the property
what the motivating factors are for any party buying, selling or leasing the property; or
that a seller, buyer, landlord or tenant will agree to financing terms other than those offered.
The transaction broker has no duty to:
conduct an independent inspection of the property for the benefit of any party
conduct an independent investigation of the buyer's financial condition
independently verify the accuracy or completeness of statements made by the seller, buyer, or any qualified third party
Frequently Asked Questions
Brokerage Relationships in Real Estate Transactions Act (BRRETA)
As an agent, am I responsible for making sure the other agent fills in the Agency Disclosure correctly?
Every licensee involved in a transaction is responsible for accurately disclosing brokerage relationships in the purchase contract or lot reservation agreement. If the brokerage relationship is incorrect, the error may be corrected in a counter-offer or amendment to the contract.
What are the brokerage relationship options when you are a broker with no affiliated licensees?
If the broker is the only licensee, designated agency is not an option. The broker may act as a seller's agent or a buyer's agent (not in the same transaction); as a landlord's agent or a tenant's agent (not in the same transaction); or as a transaction broker.
Can I tell my listing clients I'm moving to another company and give them my new contact information?
No. The salesperson or associate broker should not have any communication concerning this information with the client. The supervising broker should contact the listing clients and customers concerning any cancellation of the agreement or a re-assignment of a different listing agent. A licensee may communicate with the parties that were previously clients or customers when a brokerage relationship has ended.
Can a licensee take their listings when they change company affiliations?
When a licensee enters a brokerage relationship with a client or customer, the licensee is doing so on behalf of the supervising or branch broker. The broker owns those agreements. If the broker chooses to release his or her clients or customers from their written brokerage relationship agreement (i.e. agency agreement or transaction broker agreement), the broker should be communicating with the client or customer directly. If the salesperson or associate broker communicates with a client or customer and after that communication the client or customer asks the broker to be released from their written agreement, disciplinary action may be taken against the salesperson or associate broker.
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