Q. What is an agency disclosure form?
A. In nearly every state, the agent must disclose for who he or she works. Usually, that disclosure is made in writing and the buyer or seller must sign it.
To help brokers comply with the agency disclosure laws, some states have a statutory disclosure form written into law. Brokerage firms cans take out these paragraphs, put them on company letterhead, and presents them to buyer and sellers. Brokerage firms often make their disclosure on back of the listing agreement. It is not uncommon to see a discussion that is titled “Your representation” followed by “Buyer Brokerage” and “Dual Agency.”
Agency disclosure exists to help buyers and sellers understand who represents them in transaction. Agency disclosure exists to help buyers and sellers understand who represents them in a transaction.
Most buyers and sellers are confused by the jargon tossed about in the real estate business. The term “subagency” means virtually nothing to the average home buyer or seller. “Buyer broker” and “seller broker” are clearer terms, but until the agency tells you whether it is representing you as a buyer broker, a subagent of the seller, a seller broker, or a disclosed dual agency, confusion persists.
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