The States of Delaware, Pennsylvania and Maryland require disclosure of how Agents work. Please take a minute to read this information before continuing.
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS
Real estate brokers ("Broker") are persons who are licensed to transact real estate business by the state in which they work. Real estate salespersons ("Real Estate Licensee") are persons who are employed directly or indirectly by a Broker and are licensed to conduct real estate business on behalf of a Broker by the state in which they work. In real estate transactions, an agency relationship may be formed between a Broker and a client. The client may be either a Buyer or Lessee on the one hand (hereafter referred to collectively as "Buyer") or a Seller or Lessor on the other hand (hereafter referred to collectively as "Seller'). The client generally works with one Real Estate Licensee who is associated with the Broker. If you choose to have a Broker represent you in an agency relationship, you should enter into a written contract that establishes the obligations of both parties, and specifies how and when your Broker will be compensated. Before you enter into an agency relationship regarding a real estate transaction, you should understand what type of agency relationship you wish to have. Real Estate Licensees should advise the potential Buyers and Sellers with whom they work of the nature of their agency relationship and the rights and obligations it creates.
OPTIONS
SELLER AGENCY: The Seller's broker, any cooperating broker, and any salesperson working with either, are representing the Seller's interest and have fiduciary responsibilities to the Seller, but are obligated to treat all parties with honesty. The Seller's broker, any cooperating broker, and any salesperson working with either, without breaching the fiduciary responsibilities to the Seller, may, among other services, provide a potential buyer with information about the attributes of properties and available financing, show properties, and assist in preparing an offer to purchase. The Seller's broker, any cooperating broker, and any salesperson working with either, also have the duty to respond accurately and honestly to a potential buyer's questions and disclose material facts about properties, submit promptly all offers to purchase and offer properties without unlawful discrimination.
BUYER AGENCY: The Buyer's broker, and any salesperson working for this broker, is representing the buyer's interests and has fiduciary responsibilities to the Buyer, but is obligated to treat all parties with honesty. The Buyer's broker, and any salesperson working for this broker, without breaching the fiduciary responsibilities to the Buyer, may, among other services, provide a seller with information about the transaction. The Buyer's broker, and any salesperson working for this broker, also has the duty to respond accurately and honestly to Seller's questions and disclose material facts about the transaction, submit promptly all offers to purchase through proper procedures, and serve without unlawful discrimination.
DUAL AGENCY: A real estate broker when acting for one principal has fiduciary duties that include undivided loyalty, confidentiality and full disclosure, but only to one principal. Dual Agency creates a conflict of interest because the broker's fiduciary duties of confidentiality, full disclosure, and loyalty to one party conflict with those same duties to the other party. A real estate broker can however be the dual agent of both seller and buyer in the same transaction, but only with the knowledge and written consent of seller and buyer. Seller and buyer understand that dual agency can create conflicts of interest; therefore, the broker will not represent the interest of one party to the exclusion or detriment of the interests of the other party.
DUAL AGENCY CONSENT AGREEMENT: Buyer and Seller agree to modify Broker's fiduciary duties so that Broker may act as a disclosed dual agent. Seller and Buyer consent to and waive all claims now or hereafter arising out of or pertaining to any such conflicts of interest, or for alleged breach of fiduciary duty from the creation of this dual agency relationship.
WHAT THE DUAL AGENT CAN DO FOR SELLERS AND BUYERS:
Treat Seller and Buyer with honesty.
Provide helpful information about Property to Buyer.
Respond accurately to questions about Property.
Disclose all known material facts about Property.
Explain real estate terms and procedures.
Assist Buyer in arranging for property inspections.
Assist Buyer with financing options.
Provide information about comparable properties including a Comparative Market Analysis.
Assist with the preparation of the Agreement of Sale.
Provide advice about the types of experts who are available.
WHAT THE DUAL AGENT CANNOT DO FOR SELLERS AND BUYERS.
Disclose confidential information without permission.
Disclose material information about the other party, unless the disclosure is required by law, or unless failure to disclose would constitute fraud or dishonest dealing.
Disclose that Buyer will pay a price or agree to terms other than those contained in the offer, or that Seller will accept a price or terms other than those contained in the listing or Seller's offer.
Disclose the motivation of the Buyer to buy or the Seller to sell.
The disclosure of agency relationships does not relieve a buyer or seller from the responsibility to protect their own interests. This Agreement of Sale between Buyer and Seller is a result of negotiations between Buyer and Seller acting in their own best interests and on their own behalf. Buyer and Seller understand and agree that if provided in the listing or Buyer Agency Agreement as applicable, Broker shall have the right to collect a commission or fee from Seller or Buyer or both, however if a commission or fee is to be collected from more than one party it shall be disclosed to Buyer, Seller and all Brokers.
GENERAL OBLIGATIONS
You should read all agreements to ensure that they adequately express your understanding of the transaction. A Broker or Real Estate Licensee is a person licensed to advise you about real estate. If legal, tax or other advice is desired, you should consult a professional in that field.
Throughout the transaction you may receive more than one disclosure form. You should read its contents each time it is presented to you, considering the relationship, if any, between you and the Broker and Real Estate Licensees in your specific transaction.
Patterson-Schwartz Real Estate