- Disclosure Regarding Real Estate Agency Relationships - REQUIRED
- Disclosure of Representation of More than One Client - ENCOURAGED
- Buyer Representation Agreement - STRONGELY ENCOURAGED
- Pre-Qualification Form - STRONGLY ENCOURAGED
Disclosures Regarding Real Estate Agency Relationships (AD) - California real estate licensees involved in real property transactions are required to provide written disclosures to both the seller and buyer of the agency relationship options which are available, to secure their agreement to a particular form of agency, and to confirm that agreement in writing.
The term, "agency disclosure" really should be called "agency education" because the agency disclosure form is a statutorily-defined form that educates the seller and the buyer as to the duties and responsibilities of a listing agent, selling agent, and dual agent. It's purpose is not to select who is representing whom. The function of the "agency confirmation" paragraph in the purchase agreement is to inform the seller and buyer as to who is representing whom and whether or not an office is acting as a dual agent in this particular transaction. For more on Agency Disclosure and Confirmation, click here.
Disclosure and Consent for Representation of More than One Buyer or Seller (DA) - Discloses and obtains consent for the fact that a real estate Broker or Agent may represent more than one buyer or seller.
Buyer Representation Agreement (BRE) - An agreement between a potential buyer of real property and a real estate broker. The agreement has three key features. First, it defines the scope of the tasks and duties to be performed by buyer and broker. Second, it provides a written consent to a dual agency if one develops. Third, it places a limit on the time within which a legal action can be brought against the broker.
Under the form BRE, the broker earns his or her commission if the buyer acquires the described property during the term of the agreement, no matter how the buyer learns of the property. This form also strongly discourages a buyer from using one Agent to see properties, but then placing an offer using the services of another Agent.
Pre-Qualfication Form - Given to a loan officer to analyze, this form helps the buyer acquire the knowledge needed to look for a home in the appropriate price range. This will save both the Agent and the buyer a great deal of time and effort.
It is best to have these agreements signed at the earliest possible time in the relationship with the buyer.
To view the Buyer Pre-Purchase Forms, click here.
