CONSTANT CHANGE

Real estate brokers and lawyers meet about every 18 months to review real estate cases in which the broker was consistently the loser. These meetings usually result in revisions to contracts as well as more, less and/or amended disclosures. The goal of disclosures is to protect the Agent. REMERGE TC takes care of gathering the mandatory disclosures and reports that pertain to the property. The Agent, however, must take care of the disclosure that establishes his relationship with his client.

DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS

(C.A.R. Form AD, Revised 10/01)

The Disclosure Regarding Real Estate Agency Relationships was the second disclosure mandated by D.R.E. You can safely assume that there were enough successful lawsuits against the broker that a disclosure of duty was necessary.

Prior to the agency relationship disclosure, the duties of the Agent to his client and the other Agent's client were not spelled out. The single word in this disclosure that should make you tremble with fear is FIDUCIARY. Fiduciary duty is one in which the agent protects his

client's money. Briefly summarized,

SELLER'S AGENT FIDUCIARY DUTY TO SELLER: Get the highest price possible for the

property. Agent will not disclose the Seller's bottom line unless it is in writing (counter offer).

BUYER'S AGENTS FIDUCIARY DUTY TO BUYER: Get the lowest price possible for the property. Agent will not disclose the Buyer's top line unless it is in writing (counter offer).

AGENT'S FIDUCIARY DUTY WHEN REPRESENTING SELLER & BUYER: Without bias, orchestrate the Seller and Buyer to reach an agreement on price and terms. Agent will not disclose the Seller's bottom line to the Buyer or Buyer's top line to the Seller unless it is in writing (counter offers).

AGENCY RELATIONSHIP IS FINALIZED AT THE POINT OF SALE

At the point of listing, the agency relationship between the Seller and the Seller's Agent may yet be unknown. The Seller's Agent needs to explain that to the Seller.

EXCLUSIVE AGENCY

If the Seller's Agent receives an offer from an Agent from another Broker, the Seller's Agent represents the Seller exclusively and the Buyer's Agent represents the Buyer exclusively.

 

DUAL AGENCY

If the Seller's Agent or any other Agent of that same Broker submits an offer, both Agents represent the Buyer and the Seller. This also applies to Agents that belong to the same Broker at a different branch location, eg.. Seller's Agent is with ABC Realty, Garden Grove. Buyer's Agent is with ABC Realty, Dana Point.

THE D.R.E. PROCEDURAL ORDER

The preamble to The Disclosure Regarding Real Estate Agency Relationships states: "When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction."

Do your paperwork in this order:

1. Disclosure Regarding Real Estate Agency Relationships

Listing Agreement and/or Purchase Agreement

When you are on the Seller's side, demand that the Buyer's agency relationship disclosure is submitted to you along with the purchase agreement. When you are on the Buyer's side, request in the offer that the Seller's agency relationship disclosure is to be submitted with any counter offers (or with the signed agreement). The real estate transaction file must have real estate agency relationship disclosures from both Seller and Buyer. And, they should reflect the proper date of execution.

THINKING CAPS & SNEAKERS

The selling season is ramping up. All indications are that the summer of 2004 will be unlike any previous year. Multiple offers will dominate the market place.

When you are on the Seller's side, prepare to review and analyze a lot of offers before you finalize a sale. When you are on the Buyer's side, prepare to show a lot of homes and write a lot offers before you land a sale.

Either way, be sure to register your listings and sales immediately on www.remerge.com. Only then, can you relax before you go onto the next conquest!

CRESTC TIP OF THE MONTH

Your REMERGE TC coordinator depends on you to register your transactions accurately and fax in all paperwork as soon as possible. Once that is done, you can track her progress on line, 24/7/365. Check your files on line.

Your clients do!

Go to: www.remerge.com

Click: Check My Files

Enter: Your password (Agent password box)

Click: Property address you wish to review

DID YOU KNOW …

If you or your company have a web site, your clients can check their files from YOUR web site! The REMERGE TC web site is totally bypassed.

Our records show that Buyers and Sellers check their files on line 3-5 times a week while in escrow. That intense traffic can belong to you!

It's easy and fast. All you need is add a Check My Files button to your web site home page. Have your IT guy contact our guy Charles at remerge@cox.net to set up the link.

Letters to the Editor are welcome. Forward your questions and comments to: shelly@crestc.com