REAL ESTATE BROKERAGE DISCLOSURE … BE PRO-ACTIVE.
Congratulations! You are on the edge of making one of the largest purchases of your life!
An Intermediary or Transactional may NOT disclose this information about you, nor to you about the seller, giving NEITHER party an unfair disadvantage.
As an Intermediary or Transactional, we can work with BOTH Buyer and Seller, an effective method of ensuring both parties learn everything they should about the property and the transaction, while neither gain an unfair advantage. Information restricted is as follows;
~ The motivation factors for buying or selling.
~ That you will agree to finance terms other than those offered.
~ Any material information about you, unless disclosure is required by law or if lack of disclosure would constitute fraud or dishonest dealing.
While negotiating the best price may be a priority, as equally important is learning all you can about the property and the transaction.
A basic guide is … An Agent can not represent both parties, as an Agent they are either responsible to the seller or the buyer. You may be a client, you may be a customer. The third choice is Intermediary, Transactional or Non-Agent. The forth is designated agency; this requires a minimum of 3 licensees in one office, one representing the Seller one for the Buyer, and one to protect the transaction confidences . The relationship between you and the Agent dictates how much information YOU SHOULD SHARE and how much is shared or disclosed to the other party. Be certain you know what type of relationship you have before you talk about how much you are willing to spend, why you are buying or selling, how flexible you can be regarding financing and some material information.
We will represent Buyers, as Buyer’s Agent, on transactions other than Crazy Woman’s listings (property offered for sale by our office). Property offered for sale by our office is done as an Intermediary to both Buyer and Seller. We represent Sellers, as Seller’s Agents, when another agency bring the Buyer. We believe Sellers and Buyers should have some degree of protection or representation, therefore, unless specifically requested by the Buyer or Seller, we do not have Customers. Our office does not practice Designated Agency.
An Intermediary (we practice) may NOT disclose this information about you, nor to you about the seller, giving NEITHER party an unfair negotiating advantage.
As an Intermediary, we can work with BOTH Buyer and Seller, an effective method of ensuring both parties learn everything they should about the property and the transaction, while neither gain an unfair advantage. Information restricted is as follows;
~ The motivation factors for buying or selling.
~ That you will agree to finance terms other than those offered.
~ Any material information about you, unless disclosure is required by law or if lack of disclosure would constitute fraud or dishonest dealing.
While negotiating the best price may be a priority, as equally important is learning all you can about the property and the transaction.
In Wyoming, as in most states, every agent is required to present and explain at the earliest most opportune time one sort of disclosure or another. You should not be hearing about this or seeing this for the first time at the sign of contracts, you should have seen this document and been requested to read and sign way back when you began working with the Agent. You should also not be seeing the other party signing yours or request you sign theirs. A link below will give you an example. These disclosures vary from state to state, Wyoming is just very explanatory!
In Florida, Transactional is automatic unless otherwise agreed upon. Understand your options!!!
You should find out just who that agent is working for and just how much BUYER or SELLER information you should share. Got questions, e-us at CWRWYO@gmail.com or call us at 307-360-7771.
Click for a sample REAL ESTATE BROKERAGE DISCLOSURE with Crazy Woman Realty, Seller Annie Oakley and Buyer Calamity Jane. This Example utilizes electronic signature technology routinely utilized by Crazy Woman Realty for the Sellers and Buyers from around the globe.
A Seller’s Agent is required by law to disclose every tidbit of information they can extract from you to benefit the Seller’s position for negotiation. But having a property listed does NOT automatically mean they are a Seller’s Agent. An Intermediary/Transactional may NOT disclose this information about you, nor to you about the seller, giving NEITHER party an unfair negotiating advantage.
While it is a legal requirement to disclose who the agent across the table from you is working for, take an active role in your experience. ASK who they are working for, ASK who they represent, ask for it in writing. Protect your personal vital negotiating tools, how much you will pay, what you have to spend, why you are buying. Protect this information until you understand the Brokerage Relationship you have with the agent and until you understand if you should be sharing that vital information at all.
INTERMEDIARY/Transactional VS. SELLER’S AGENT INTERMEDIARY/Transactional VS. BUYER’S AGENT
LISTING AGENT IS NOT SYNONOMOUS WITH SELLER’S AGENT !!
The duties of a listing agent (Seller’s or Intermediary/Transactional) are to:
- Prepare and complete contracts in personal service to represent a specific property for sale.
- Advertise said property.
- Show said property.
- Qualify a buyer of intent and ability.
- Prepare and complete purchase agreement.
- Act as hub for all services to expeditiously complete purchase agreement and transfer of property.
Additional services we specifically provide:
- Provide documents of public knowledge to potential Buyers in disclosure. Including but not limited to;Aid Buyer’s in lender qualification.
- Well information
- Septic information
- Government Mineral status
- Soil survey
- State land proximity and access
- Utility locations and costs
- Assessment estimates
- Legal descriptions
- Acreage estimations
- Easements and right of ways
- Title clouds and repercussions to values
- Access assessments
- Climate
- Unfiled power easements
- Aid in property divisions, developments and relief with encroachments
- Definition of control vs. ownership in Title Commitment
- Aid Buyer’s in Lender qualification.
- Aid Buyer’s in remediation of credit issues.
- CMA (comparable market analysis) to Sellers and Buyers.
- BPO (broker price opinion) to Property Owners and Financial Institutions
- We will inform of all possible consequences to Buyers and Sellers of actions that will adversely affect the property or the transaction.
What we do NOT do:
1. Disclose that you may be willing to agree to a price different that the one offered.
2. The motivating factors for buying or selling.
3. That you will agree to financing terms other than those offered.
4. Any material information about you, unless disclosure is required by law or if lack of disclosure would constitute dishonest dealings or fraud.
5. Negotiate. We will provide enough market education both parties can make an informed decision.
6. Set prices for property.
7. Set offer prices for property.
WHY INTERMEDIARY/Transactional FOR SELLERS? Protection from vicarious liability.
WHY INTERMEDIARY/Transactional FOR BUYERS? Protection from unfair disadvantage.
The selling end of a transaction is pretty cut and dry…
A seller knows their property, the area they live, the conditions of their environment, of their encumbrances, the governing rules of development. They are the home town. An agents job for a seller comes in their ability to reach out to sort disclosure, potential buyers, advertising, education, ability to know area inventory, accurate representation of the commerce, recreation, resale, education, growth opportunities, political aura, boom potential, stagnancy, going concern, and the local flavor.
You contract with a listing agent based on their ability to serve your listing.
The Buyers educational needs in the purchase process greatly exceed the Sellers…
Buying requires the education in all of the above, plus the finance and appraisal end, and locating a suitable property for their needs. Clearly the Buyer has higher level of requirements to close on a transaction.
Got questions, e-us at CWRWYO@gmail.com or call us at 307-360-7771.
The signs are there … if you are pro-active.
PLEASE CALL OR EMAIL CRAZY WOMAN WITH ANY QUESTIONS YOU MAY HAVE REGARDING BROKERAGE RELATIONSHIPS.