You need to know – What is a no broker relationship?

YouNeedToKnowWeb500A no broker relationship exists when a member of the public chooses not to be represented by a real estate broker, and signs a No Brokerage Relationship Disclosure Form acknowledging this fact.

In such a case the broker would facilitate the purchase or sale of real estate without entering into a single agent or transaction broker relationship

When working in a no broker relationship for the customer the broker has a duty to:

  • Deal honestly and fairly
  • Disclose all known facts that affect the value of the property
  • Account for all funds

You need to know – What is a transaction broker relationship?

YouNeedToKnowWeb500A transaction broker relationship is the presumed relationship that a licensee is working with a customer under, in the absence of a written agreement to work as a single agent or under a no brokerage relationship

In working as a transaction broker for the customer the broker has a duty to:

  • Deal honestly and fairly
  • Disclose all known facts that affect the value of the property
  • Account for all funds
  • Use skill, care and diligence
  • Present all offers and counteroffers
  • Exercise Limited Confidentiality

There may be additional duties that are mutually agreed to

You need to know – What is a single agent relationship?

YouNeedToKnowWeb500A single agent relationship exists when a broker accepts employment from a principal under a written agreement

A fiduciary relationship is created where the broker owes the following duties to the principal:

  • Confidentiality
  • Obedience
  • Loyalty
  • Disclosure

Additionally, in working as a single agent for the principal the broker must:

  • Deal honestly and fairly
  • Disclose all known facts that affect the value of the property
  • Account for all funds
  • Use skill, care and diligence
  • Present all offers and counteroffers

You need to know – What is agency law?

YouNeedToKnowWeb500Agency law is an area of commercial law dealing with the set of relationships that involve a person (called an agent) who is authorized to act on behalf of another (called the principal) to create a legal relationship with a third party

Agency law is rooted in common law

The Brokerage Relationship Disclosure Act relates to the brokerage relationships that are created in real estate business