The disclosed full disclosure portion of the limited agency is achieved in Oregon through the inclusion of the original agency`s statutory disclosure in the disclosed limited agency agreement. The agency`s initial disclosure explains the representation of more than one party to a transaction, including the role of the lead broker and the loyalty and confidentiality restriction associated with the dual agency. Once the disclosure is made, the parties allow the individual representatives to continue to represent only the party with whom they already have a relationship, while the lead broker represents both parties as a double agent. Back to top None of the above positive obligations of an agent can be lifted, with the exception of #7. The positive obligation listed in point 7 can only be lifted by written agreement between the seller and the agent. The «in-company» distribution model, which was used in Oregon until 2002 and is still used in most states, manages potential dual agency disputes by turning all of the company`s licensees into agents of all of the company`s customers. In this way, it is assumed that all agents could have access to the listing files and still represent the buyers, as their ability to use the information from the listing files for the benefit of their buying customers would be limited by the fact that they are also agents of the seller. All it took for this system to be operational was a set of rules about what information a dual agent could and could not disclose, and a way for the customer to «accept» an «internal» sale. According to the written registration contract for the sale of real estate, an agent represents only the seller, unless the seller agrees in writing that the agent may also represent the buyer. An agent representing only the seller owes the seller, other parties, and agents of other parties involved in a real estate transaction the following positive obligations: This brochure describes the legal obligations of real estate licensees in Oregon. Real estate agents and leading brokers are required to provide you with this information when they first meet with you.
This brochure is provided for informational purposes only. Neither the brochure nor its delivery should be construed as evidence of the establishment of an agency relationship between you and any agent or principal broker. The limited agency disclosed, because it is a duplicate agency, can only be done by written agreement. In this agreement, the representative must disclose to the client the consequences of the dual capacity to act and obtain the client`s consent to the relationship. In Oregon, this is done by both clients signing a form legally required for the disclosure of a limited agency contract. Although of identical structure, there are separate legal forms for the seller and the buyer. Oregon law provides for three types of agency relationships between real estate agents and their clients: The disclosed limited agency is a dual agency. The Agency`s law only allows dual agency with the written consent of the client, which was granted after receipt of the full disclosure by the agent.
What the courts want to see is that the client has understood the consequences of what he has agreed to before giving his consent. So, what are the consequences of the dual capacity to act for the client? The actual agency relationships between the seller, buyer and their agents in a real estate transaction must be recognized at the time of an offer to purchase. Please read this brochure carefully before entering into an agency relationship with a real estate agent. Since the sales model within the company depended on creating duplicate agency relationships for all agents as soon as an agent made a registration or worked with a buyer, it was necessary to obtain the client`s consent before entering into an agency relationship. To do this, a disclosure «within the company» is part of the agency`s initial disclosure. However, given that the agency`s initial disclosure had to be made before there was an actual relationship with the agency, the wording of the internal disclosure was a bit cumbersome. The form asked the potential client to give «limited approval» to an agent they «may» hire to act as a dual agent if a dual agency situation «arises» in the future. Unless otherwise agreed in writing, an Agent will not be required to investigate matters outside the scope of the Agent`s expertise, including, but not limited to, examining the ownership status, legal status of title, or Seller`s prior compliance with the law. It didn`t take long for lawyers working for disappointed buyers to take advantage of the clumsiness of the company`s internal form. The form does not contain clear consent to a dual agency relationship after full disclosure of the consequences of such consent to the client; Lawyers have managed to attack the legal adequacy of internal forms.
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