Commission Rule 6.6 sets forth that a broker may enter into a listing contract as the designated broker for a particular consumer in a particular transaction as either a single agent or transaction-broker.
Commission Rule 6.6 sets forth that the individual team members must all be the designated broker for a particular consumer in a particular transaction as either single agents or transaction-brokers.
The brokerage relationship that one team member has with the consumer defines the brokerage relationship that ALL team members have with that consumer.
The names of all the members of the team must be disclosed in the listing contract. For instance, if one team member is an agent for the seller, that binds all of the team members to the designated agent for the seller. Other team members must then disclose to the buyer that they are the agent for the seller.
No, that would be dual agency, which is not allowed.
Commission Rule 6.7 sets forth that neither brokers nor teams may enter into a brokerage relationship with one consumer as a single agent and the other consumer as a single agent or transaction-broker in the same transaction.
Commission Rule 6.9 sets forth that a broker or team who changes their brokerage relationship from a single agent for one consumer to assisting both consumers in the same real estate transaction as a transaction broker must provide the written Commission-Approved “Change of Status” form to the consumer that has the changed relationship with the broker. This form is presented to the consumer at the time the broker begins to assist both consumers as a transaction-broker, but not later than at the time the consumer signs the contract.
Commission Rule 6.5 sets forth that a brokerage disclosure must be in writing.
In addition, that disclosure must be made to the consumer at the earliest reasonable opportunity and prior to eliciting or discussing confidential information from the consumer for real estate brokerage services. Such confidential information would include (but is not limited to) a parties’ motivation and financial qualifications.
Examples would include preliminary conversations or “small talk” concerning price range, location and property styles, or responding to general factual questions from a potential consumer concerning properties which have been advertised for sale or lease.
Being a transaction-broker for a family member, friend, long-term business partner, or co-owner of a property presents a real risk of a conflict of interest, in addition to the perceived conflict. In these instances, the broker should be a single agent for a party and the other party should hire their own broker. It is also advisable to discuss any potential conflict of interest situations with your employing broker or legal counsel.