Skip to main content.

Frequently Asked Questions - Agency Disclosure

  1. May I tell a purchaser that I will represent him or her instead of the seller?
  2. May I work for the purchaser and be paid a fee by the seller and listing broker?
  3. Which agent is supposed to make the proper agency disclosure statement in a cooperating transaction?
  4. Do I need a special form to make the agency disclosure or can I make the required disclosure in a written offer?

Q. May I tell a purchaser that I will represent him or her instead of the seller?

A. Only if specifically authorized to do so by your broker. See Rule 520-1-.06.

Q. May I work for the purchaser and be paid a fee by the seller and listing broker?

A. Yes, provided you make proper disclosure. See Rule 520-1-.06.

Q. Which agent is supposed to make the proper agency disclosure statement in a cooperating transaction?

A. The selling agent should make the disclosure to the prospective purchaser, and the listing agent should make the disclosure to the prospective seller. If the listing agent discovers that the selling agent has not made the disclosure to the prospective purchaser, then in order to protect properly the interests of the seller, the listing agent should see that the proper disclosure is made to the purchaser. See Rule 520-1-.06.

Q. Do I need a special form to make the agency disclosure or can I make the required disclosure in a written offer?

A. Either way. The license law requires that licensees make the disclosure at the time of or before any written offer. The earlier the written disclosure is made, the greater the protection for the agent. You should use the disclosure language which appears in Rule 520-1-.06 or language prepared by your firm's attorney.