Commission Rule 6.6 sets forth that a broker may enter into a listing contract as the designated broker for a particular consumer in a particular transaction as either a single agent or transaction-broker.
How do the brokerage relationships apply to teams?Commission Rule 6.6 sets forth that the individual team members must all be the designated broker for a particular consumer in a particular transaction as either single agents or transaction-brokers.
The brokerage relationship that one team member has with the consumer defines the brokerage relationship that ALL team members have with that consumer.
The names of all the members of the team must be disclosed in the listing contract. For instance, if one team member is an agent for the seller, that binds all of the team members to the designated agent for the seller. Other team members must then disclose to the buyer that they are the agent for the seller.
Can a team member be a single agent for a seller and another team member be a single agent for a buyer in the same transaction?
No, that would be dual agency, which is not allowed.
Commission Rule 6.7 sets forth that neither brokers nor teams may enter into a brokerage relationship with one consumer as a single agent and the other consumer as a single agent or transaction-broker in the same transaction.
Under what circumstances can a broker or team work with both consumers in the same real estate transaction?
Commission Rule 6.7 sets forth that if properly disclosed, in writing (e.g. listing contracts), the broker or team that works with both consumers in the same real estate transaction may do so as:
Commission Rule 6.9 sets forth that a broker or team who changes their brokerage relationship from a single agent for one consumer to assisting both consumers in the same real estate transaction as a transaction broker must provide the written Commission-Approved “Change of Status” form to the consumer that has the changed relationship with the broker. This form is presented to the consumer at the time the broker begins to assist both consumers as a transaction-broker, but not later than at the time the consumer signs the contract.
When do you use the Definitions of Working Relationships form?The Definitions of Working Relationships form is not a disclosure. The form is only required when a party inquires about a brokerage relationship that is not offered.
It is a resource to provide to a consumer when asked about the different brokerage relationships. It also provides assurance that the relationships have been explained to the consumer.
What are the Brokerage Disclosure Forms that can be used by a Broker?Commission Rule 6.5 sets forth that a brokerage disclosure must be in writing.
In addition, that disclosure must be made to the consumer at the earliest reasonable opportunity and prior to eliciting or discussing confidential information from the consumer for real estate brokerage services. Such confidential information would include (but is not limited to) a parties’ motivation and financial qualifications.
What should I do if a customer does not want to sign the Definitions of Working Relationships form or one of the Brokerage Disclosure - Definitions of Working Relationships forms to acknowledge receipt of the disclosure?
In these instances, the broker should note that fact on a copy of the disclosure form with the date and retain a copy of the form in their records, along with the email providing the form.
What information or activities would not be considered confidential in discussions with the consumer?
Examples would include preliminary conversations or “small talk” concerning price range, location and property styles, or responding to general factual questions from a potential consumer concerning properties which have been advertised for sale or lease.
Can I be a transaction-broker for a family member or friend?Being a transaction-broker for a family member, friend, long-term business partner, or co-owner of a property presents a real risk of a conflict of interest, in addition to the perceived conflict. In these instances, the broker should be a single agent for a party and the other party should hire their own broker. It is also advisable to discuss any potential conflict of interest situations with your employing broker or legal counsel.
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