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This pamphlet describes
agency relationships and the duties and
responsibilities of real estate licensees in
Oregon. This pamphlet is informational
only and neither this page nor its delivery
to you may be construed to be evidence of
intent to create an agency relationship.
This pamphlet may also be downloaded in .pdf
format
here. |
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.
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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. |
Duties and Responsibilities of an Agency 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, other parties and their agents involved in a
real estate transaction:
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1. To exercise
reasonable care and diligence;
2. To
deal honestly and if good faith;
3. 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;
4. To disclose material facts known
by the agent and not apparent or readily
ascertainable to a party;
5. To account in a timely manner
for money and property received from or on
behalf of the client;
6. To be loyal to their client by
not taking action that is adverse or
detrimental to the client's interest in a
transaction;
7. To disclose in a timely manner
to the client any conflict of interest,
existing or contemplated;
8. To advise the client to seek
expert advice on matters related to the
transactions 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 a
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 these affirmative duties of an agent may be
waived, except #10, which can only be waived by written
agreement between 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 broker (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 their clients:
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1. To disclose a
conflict of interest in writing to all
parties;
2. To take no 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:
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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
transaction 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.
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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. This form may
be downloaded in .pdf format
here. |
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