INITIAL AGENCY DISCLOSURE PAMPHLET (OAR 863-015-215(4))
This pamphlet describes agency relationships and the duties and responsibilities of real estate licensees in Oregon. This pamphlet is informational only and neither the pamphlet nor its delivery to you may be construed to be evidence of intent to create an agency relationship.
Real Estate Agency Relationships
An “agency” relationship is a voluntary legal relationship in which a real estate licensee (the “agent”) agrees to act on behalf of a buyer or a seller (the “client”) in a real estate
transaction. Oregon law provides for three types of agency relationships between real estate agents and their clients:
Seller’s Agent — Represents the seller only;
Buyer’s Agent — Represents the buyer only;
Disclosed Limited Agent — Represents both the buyer and seller, or multiple buyers who want to purchase the same property. This can be done only with the written permission of both clients.
The actual agency relationships between the seller, buyer and their agents in a real estate transaction must be acknowledged at the time an offer to purchase is made. Please read this pamphlet carefully before entering into an agency relationship with a real estate agent.
Duties and Responsibilities of an Agent Who Represents Only the Seller or Only the Buyer
Under a written listing agreement to sell property, an agent represents only the seller unless the seller agrees in writing to allow the agent to also represent the buyer. An agent who agrees to represent a buyer acts only as the buyer’s agent unless the buyer agrees in writing to allow the agent to also represent the seller. An agent who represents only the seller or only the buyer owes the following affirmative duties to their client, other parties and their agents involved in a real estate transaction:
1. To exercise reasonable care and diligence; 2. To deal honestly and in good faith;
3. To present all written offers, notices and other communications in a timely manner whether or not the seller’s property is subject to a contract for sale or the buyer is already a party to a contract to purchase;
4. To disclose material facts known by the agent and not apparent or readily ascertainable to a party;
5. To account in a timely manner for money and property received from or on behalf of the client;
6. To be loyal to their client by not taking action that is adverse or detrimental to the client’s interest in a transaction;
7. To disclose in a timely manner to the client any conflict of interest, existing or contemplated;
8. To advise the client to seek expert advice on matters related to the transactions that are beyond the agent’s expertise;
9. To maintain confidential information from or about the client except under subpoena or court order, even after termination of the agency relationship; and
10. When representing a seller, to make a continuous, good faith effort to find a buyer for the property, except that a seller’s agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale. When representing a buyer, to make a continuous, good faith effort to find property for the buyer, except that a buyer’s agent is not required to seek additional properties for the buyer while the buyer is subject to a contract for purchase or to show properties for which there is no written agreement to pay compensation to the buyer’s agent.
None of these affirmative duties of an agent may be waived, except #10, which can only be waived by written agreement between client and agent.
Under Oregon law, a seller’s agent may show properties owned by another seller to a prospective buyer and may list competing properties for sale without breaching any affirmative duty to the seller. Similarly, a buyer’s agent may show properties in which the buyer is interested to other prospective buyers without breaching any affirmative duty to the buyer.
Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise.
Duties and Responsibilities of an Agent Who Represents More than One Client in a Transaction
One agent may represent both the seller and the buyer in the same transaction, or multiple buyers who want to purchase the same property only under a written “Disclosed Limited Agency” agreement, signed by the seller, buyer(s) and their agent.
When different agents associated with the same real estate firm establish agency relationships with different parties to the same transaction, only the principal broker (the broker who supervises the other agents) will act as a Disclosed Limited Agent for both the buyer and seller. The other agents continue to represent only the party with whom the agent already has an established agency relationship unless all parties agree otherwise in writing. The supervising principal broker and the agents representing either the seller or the buyer have the following duties to their clients:
1. To disclose a conflict of interest in writing to all parties;
2. To take no action that is adverse or detrimental to either party’s interest in the transaction; and
3. To obey the lawful instruction of both parties.
An agent acting under a Disclosed Limited Agency agreement has the same duties to the client as when representing only a seller or only a buyer, except that the agent may not, without written permission, disclose any of the following:
1. That the seller will accept a lower price or less favorable terms than the listing price or terms;
2. That the buyer will pay a greater price or more favorable terms than the offering price or terms; or
3. In transactions involving one-to-four residential units only, information regarding the real property transaction including, but not limited to, price, terms, financial qualifications or motivation to buy or sell.
No matter whom they represent, an agent must disclose information the agent knows or should know that failure to disclose would constitute fraudulent misrepresentation. Unless agreed to in writing, an agent acting under a Disclosed Limited Agency agreement has no duty to investigate matters that are outside the scope of the agent’s expertise.
You are encouraged to discuss the above information with the agent delivering this pamphlet to you. If you intend for that agent, or any other Oregon real estate agent, to represent you as a Seller’s Agent, Buyer’s Agent, or Disclosed Limited Agent, you should have a specific discussion with him/her about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make a licensee your agent without their knowledge and consent, and an agent cannot make you their client without your knowledge and consent.
I have completed numerous transactions with Brian over the last few years. He is a true professional that can be counted on for his honesty and integrity. His wealth of experience and dedication to his profession is unmatched. I highly recommend him to anyone seeking help with their real estate needs. -Anonymous
This Ladd team is the most professional team of realtors I have ever dealt with. They are compassionate and detailed in every phase of the process and their communication is above reproach as we were involved in every phase of the sale of our home and the purchase of our new home. Bryan Hilts was especially helpful during the entire process of selling our home and buying a townhome.
They helped us to sell our home and to purchase & move into our new Town home. The process of selling property & purchasing new has changed in the past 18 years. We felt so fortunate that we had their group who stood with us all the way. They were always there to answer questions and give encouragement. -Charles and Ann Frazier
Working with Brian to find a new home for us was a great experience in all aspects. Brian listened well to our selection criteria, and always quickly responded to our many questions. We knew we were in very good and experienced hands with his extensive knowledge of the local real estate market. Brian’s completely open style and pleasant personality make him a top choice. Brian obviously loves his job and the results he gets for his clients show his dedication and commitment. HIGHEST RECOMMENDAT…
My experience with the Ladd group was nothing short of spectacular. Our realtor, Lily Dupont, really listened to our wants and needs and found many houses for us to view that fit our style. She was always there for us through many forms of communication and made the process fun and exciting. Once we found our dream home she stayed late and put in the offer that night (the reason we got the house.) Once our offer was excepted she fully explained the process and helped us with every aspect. I ca…
We first became acquainted with Brian 12 years ago while building our home in Arvada, Colorado by Bruttany Builders. Brian was always willing to make sure all of our concerns were addressed and remedied. We began looking for a second home in Steamboat Springs, Colorado 3 years ago. We were pleasantly surprised that Brian was a Real Estate Agent in the area and to be honest that is why we pursued the search at that time. Brian made himself available on the week-ends that we would be traveling…
From our initial appointment, through the marketing & sales strategy discussions, to our eventual close, Brian and his entire team at Ladd Group where professional, thoughtful, and above all else, available to help us through a very challenging sales cycle. It’s important to understand that our home was in a middle-tier market price range that made Brian’s job of finding us a qualified buyer very difficult. Brian helped us stay calm and reasonable in our thinking and actions as we struggled t…
Brian is genuine, honest and knowledgable agent who really cares about his clients.. I appreciate his integrity & character. Most of all I value that Brian seeks to assure that his clients are making a valuable great investment in their property selection.. I highly recommend Brian to anyone who is seeking a home or investment.. Thanks Brian from Adrian & Susan Reyes Frandsen in California..
Brian and his team at the Ladd Group sold our home in Bend while we were in California. They took care of everything and we had a few hurdles pop up with the prepping of the house for sale, which they took in stride and worked around. Brian is very responsive and everyone on the team seems to do a super job. We would highly recommend the Ladd Group. On top of all that, after our property closed, we received a very nice gift from Brian in the mail – and we’ve NEVER received a “thanks for doing b…
Lily was awesome! My husband and I were not only new to the area but also first time home buyers. She was patient, listened and was super easy to work with. Lily walked us through each step and made us feel comfortable throughout the entire process. I highly recommend Lily if you’re looking to move to Bend! -Anonymous