Understanding Agency

Some specific aspects of the duty of disclosure

Disclosure by a listing salesperson to a seller:

Sellers Agents must disclose to the seller any information they discover that might affect the seller's ability to obtain the highest price and best terms in the sale of the property specifically. The sellers agent should reveal the following information to the seller:

• Any relationship with the seller agent might have the buyer or any interest that the sellers agent might have in the property.

• All offers to the seller's property.

• The identity of all potential buyers, if the sellers agent has the information.

• Any known facts affecting the value of a desirability of the property.

• A buyer's intent to subdivide or resell the property for as profit that the sellers agent knows.

• Information concerning the ability or Willingness of the buyer to offer a higher price or different terms if known.

• Any other relevant information known to the seller's agent that the seller would find useful.

Disclosure by a selling sales person to a buyer:

Buyers agents must disclose to the buyer any information which they discover that might affect the buyers ability to obtain the property at the lowest price and on the favorable terms. Specifically, the buyers agent should reveal the following information to to the buyer:

• Any relationship that the buyer's agent has with the seller? Or any interest which the buyer's agent might have in the property for sale

• Any known fact affecting the value or desirability of the property that cannot be readily discovered by the buyer - latent defects and patent.

• Matters relating to legal title and the ability of the seller to complete the transaction.

• The length of time that the property has been on the market.

• Any facts relating to the urgency of the sellers need to dispose of the property if known.

• The willingness of the sellers to accept any lower price or different terms, if known.

• Any other relevant information known to the buyer's agent that is useful to the buyer.

Limited joint representation:

The information regarded as confidential in a joint representation situation is:

• Motivation of the seller to sell or the buyer to buy.

• The price and terms that any party may be prepared to agree to.

• Personal information about any parties involved

• Terms and conditions of competing offers or negotiations