Agency Disclosure

As a REALTOR®, it is my duty to provide this valuable information to let you know what you should expect from a REALTOR®, whether you are a customer or client. Please click on the following link: Agency Disclosure

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Fiduciary/statutory Duties to a Principal/Client

Regardless of whether the duties owed in a particular state are traditional, common law fiduciary duties or are statutorily defined, they are still owed to any principal/client. And whether the agency relationship is with a seller or a buyer makes no difference; duties are owed to both, though those duties may differ.

Here is a great acronym to help you remember the kind of service you should expect from your agent: OLD CAR

	Obedience - the agent is required to act, following and abiding all lawful instructions, subject to the principal's continuous control, but not exceeding the scope of authority conferred by the principal. The agent will not make decisions for the principal.
	Loyalty - the agent is prohibited from advancing any interests adverse to the principal's interest or conducting the principal's business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principal's interest.
	Disclosure (full) - the agent is required to disclose affirmatively and honestly all information concerning the transaction (and property) that might affect the decisions a principal makes, informing the principal what the agent knows.
	Confidentiality - the agent is prohibited from communicating personal information about the principal that was given to or acquired by the agent within the scope of employment as an agent to the principal. Personal information must be kept confidential unless the principal releases the agent, or subagent, from this duty. However, the material facts and defects of a property are NOT confidential.
	Accounting - the agent is required to promptly report to the principal all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.
	Reasonable Care and Diligence - the agent is required to protect the principal from foreseeable risks of harm, recommending that the principal obtain expert advice or assistance when the principal's needs are outside the scope of the agent's expertise.

In a dual agency situation, where the same brokerage would represent both the buyer and seller, you do not get Obedience and Loyalty, and full Disclosure conflicts with Confidentiality so you are only left with Accounting and Reasonable care and diligence.

Responsibilities to a Customer

While agents have duties owed to principal/clients, all practitioners have legal obligations to customers as well. These are in addition to any duties/responsibilities imposed by state laws and regulations.

	Honesty - no statement or action can result in fraud or misrepresentation. All laws and regulations pertaining to the transaction must be obeyed, including the disclosure of material facts.
	Agency and Material Fact Disclosures - disclosure of agency relationships, including an explanation of the difference between a customer and principal/client relationship, must be made in a timely fashion so that customers can protect their own interests. (e.g., reveal any confidential information). Material facts about properties must also be disclosed.
	Accounting - the agent is required to promptly report to the principal all money and property received and paid out, and upon request, to tender an account of these actions. This duty also requires the agent to safeguard money or property held on behalf of the principal.
	Reasonable Skill and Care - the agent must comply with state real estate licensing laws to provide services that are neither misrepresentative nor fraudulent.