|
OREGON REAL ESTATE AGENCY
DISCLOSURE PAMPHLET
OAR 863-015-215 (4)
This pamphlet describes agency relationships and the duties and responsibilities
of real estate licensees in Oregon. This pamphlet is informational only and neither
the pamphlet nor its delivery to you may be construed to be evidence of intent to
create an agency relationship.
Real Estate Agency Relationships
An "agency" relationship is a voluntary legal relationship in which a real estate
licensee (the "agent"), agrees to act on behalf of a buyer or a seller (the "client")
in a real estate transaction. Oregon law provides for three types of agency
relationships between real estate agents and their clients:
Seller's Agent - Represents the seller only;
Buyer's Agent - Represents the buyer only;
Disclosed Limited Agent - Represents both the buyer and seller,
or multiple buyers who want to purchase the same property. This
can be done only with the written permission of both clients.
The actual agency relationships between the seller, buyer and their agents
in a real estate transaction must be acknowledged at the time an offer to
purchase is made. Please read this pamphlet carefully before entering into
an agency relationship with a real estate agent.
Duties and Responsibilities of an Agent
Who Represents Only the Seller or Only the Buyer
Under a written listing agreement to sell property, an agent represents only the
seller unless the seller agrees in writing to allow the agent to also represent the
buyer. An agent who agrees to represent a buyer acts only as the buyer's agent
unless the buyer agrees in writing to allow the agent to also represent the seller.
An agent who represents only the seller or only the buyer owes the following
affirmative duties to their client, as well as other parties and their agents involved
in a real estate transaction:
1. To deal honestly and in good faith;
2. To present all written offers, notices and other communications
in a timely manner whether or not the seller's property is subject
to a contract for sale or the buyer is already a party to a contract
to purchase;
3. To disclose material facts known by the agent and not apparent
or readily ascertainable to a party; In addition to Nos. 1, 2, and 3,
above, an agent who represents only the seller or only the buyer
owes the following affirmative duties only to their client:
4. To exercise reasonable care and diligence;
5. To account in a timely manner for money and property received
from or on behalf of the client;
6. To be loyal by not taking action that is adverse or detrimental
to the client's interest in a transaction;
7. To disclose in a timely manner any conflict of interest,
existing or contemplated;
8. To advise the client to seek expert advice on matters related
to the transaction that are beyond the agent's expertise;
9. To maintain confidential information from or about the client
except under subpoena or court order, even after termination of
the agency relationship; and
10. When representing a seller, to make a continuous, good faith
effort to find a buyer for the property, except that a seller's agent
is not required to seek additional offers to purchase the property
while the property is subject to a contract for sale. When
representing a buyer, to make a continuous, good faith effort to
find property for the buyer, except that buyer's agent is not required
to seek additional properties for the buyer while the buyer is subject
to a contract for purchase or to show properties for which there is
no written agreement to pay compensation to the buyer's agent.
None of the above affirmative duties of an agent may be waived, except
#10, which can only be waived by written agreement between the client
and agent. Under Oregon law, a seller's agent may show properties owned
by another seller to a prospective buyer and may list competing properties
for sale without breaching any affirmative duty to the seller. Similarly, a
buyer's agent may show properties in which the buyer is interested to
other prospective buyers without breaching any affirmative duty to the buyer.
Unless agreed to in writing, an agent has no duty to investigate matters
that are outside the scope of the agent's expertise.
Duties and Responsibilities
of an Agent Who Represents
More than One Client in a Transaction
One agent may represent both the seller and the buyer in the same transaction,
or multiple buyers who want to purchase the same property only under a written
"Disclosed Limited Agency" agreement, signed by the seller, buyer(s) and their
agent. When different agents associated with the same real estate firm establish
agency relationships with different parties to the same transaction, only the
principal (the broker who supervises the other agents) will act as a Disclosed
Limited Agent for both the buyer and seller. The other agents continue to represent
only the party with whom the agent already has an established agency relationship
unless all parties agree otherwise in writing. The supervising principal broker and
the agents representing either the seller or the buyer have the following duties to
the buyer and seller:
1. To disclose a conflict of interest in writing to all parties;
2. To take action that is adverse or detrimental to either party's
interest in the transaction; and
3. To obey the lawful instruction of both parties.
An agent acting under a Disclosed Limited Agency agreement has the same
duties to the client as when representing only a seller or only a buyer, except
that the agent may not, without written permission, disclose any of the following:
1. That the seller will accept a lower price or less favorable
terms than the listing price or terms;
2. That the buyer will pay a greater price or more favorable
terms than the offering price or terms; or
3. In transactions involving one-to-four residential units only,
information regarding the real property transactions including,
but not limited to, price, terms, financial qualifications or
motivation to buy or sell.
No matter whom they represent, an agent must disclose information the agent
knows or should know that failure to disclose would constitute fraudulent
misrepresentation. Unless agreed to in writing, an agent acting under a Disclosed
Limited Agency agreement has no duty to investigate matters that are outside the
scope of the agent's expertise.
You are encouraged to discuss the above information with the agent
delivering this pamphlet to you. If you intend for that agent, or any other
Oregon real estate agent, to represent you as a Seller's Agent, Buyer's
Agent, or Disclosed Limited Agent, you should have a specific discussion
with him/her about the nature and scope of the agency relationship.
Whether you are a buyer or seller, you cannot make a licensee your
agent without their knowledge and consent, and an agent cannot make
you their client without your knowledge and consent.
Disclaimer for the Website Owned by Jerry Hicks
The information contained in this web site is believed to be reliable and while every effort is made to assure that the information is as accurate
as possible, the owner of this site whose name appears above, and Advanced Access disclaim any implied warranty or representation
about it's accuracy, completeness or appropriateness for any particular purpose. This includes but is not limited to information provided by
any third party which is accessed through this site via a hyperlink.
Those persons who access this information assume full responsibility
for the use of said information and understand and agree that the owner
of this site named above, or Advanced Access, are not responsible or liable for any claim, loss or damage arising from the use of any information contained in this site.
Any reference to specific products, companies or services does not necessarily constitute or imply recommendation or endorsement by the owner of this site or Advanced Access.
Now that everyone's lawyers are happy . . . please enjoy this site! |