Oregon Real Estate Initial Agency Disclosure Pamphlet OAR 863-015-215

This pamphlet describes the legal obligations of real estate agents in Oregon. Real estate agents and Principal Brokers are required to provide this information to you when they first meet you.

This pamphlet is informational only. Neither the pamphlet nor its delivery to you may be interpreted as evidence of intent to create an agency relationship between you and an agent or Principal Broker.

 

Real Estate Agency Relationships

An “agency” relationship is a voluntary legal relationship in which a licensed real estate agent or Principal Broker 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 client

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.

Definition of “Confidential Information”

Generally, agents must maintain confidential information about their clients. “Confidential information” is information communicated to the agent or the agent’s Principal Broker by the buyer or seller of one to four residential units regarding the real property transaction, including but not limited to price, terms, financial qualifications or motivation to buy or sell. “Confidential information” does not mean information that:

  1. The buyer instructs the agent or the agent’s Principal Broker to disclose about the buyer to the seller, or the seller instructs the agent or the agent’s Principal Broker to disclose about the seller to the buyer; and
  2. The agent or the agent’s Principal Broker knows or should know failure to disclose would constitute fraudulent representation.

 

Duties and Responsibilities of Seller’s Agent

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  represents  only  the  seller  owes  the  following  affirmative  duties  to  the  seller, the other parties and the other parties’ agents involved in a real estate transaction:

  1. To deal honestly and in good faith;
  2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and
  3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party;

A Seller’s Agent owes the seller the following affirmative duties;

  1. To exercise reasonable care and diligence;
  2. To account in a timely manner for money and property received from or on behalf of the seller;
  3. To be loyal to the seller by not taking action that is adverse or detrimental to the seller’s interest in a transaction;
  4. To disclose in a timely manner to the seller any conflict of interest, existing or contemplated;
  5. To advise the seller to seek expert advice on matters related to the transactions that are beyond the agent’s expertise;
  6. To maintain confidential  information  from  or about the  seller  except  under  subpoena  or court order,  even after  termination  of the agency relationship; and
  7. Unless agreed otherwise in writing, 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

None of the above affirmative  duties  of an agent may  be waived,  except #7.  The affirmative  duty  listed in #7 can only  be waived  by written agreement between seller 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.Unless agreed to in writing, an agent has no duty to investigate matters that are  outside  the  scope  of  the  agent’s  expertise, including but not limited to investigation of the condition of property, the legal status of the title or the seller’s past conformance  with law.

 

Duties and Responsibilities of Buyer’s Agent

An agent, other than the Seller’s Agent, may agree to act as the Buyer’s Agent only. The Buyer’s Agent is not representing the seller, even if the Buyer’s Agent is receiving compensation for services rendered, either in full or in part, from  the seller or  through  the Seller’s Agent.

An agent who represents only the buyer owes the following affirmative duties to the buyer, the other parties and the other parties’ agents involved in a real estate transaction:

  1. To deal honestly and in good faith;
  2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and
  3. To disclose material facts known by the agent and not apparent or readily ascertainable to a

A Buyer’s Agent owes the buyer the following affirmative duties:

  1. To exercise reasonable care and diligence;
  2. To account in a timely manner for money and property received from or on behalf of the buyer;
  3. To be loyal to the buyer by not taking action that is adverse or detrimental to the buyer’s interest in a transaction;
  4. To disclose in a timely manner to the buyer any conflict of interest, existing or contemplated;
  5. To advise the buyer to seek expert advice on matters related to the transaction that are beyond the agent’s expertise;
  6. To maintain confidential information from or about the buyer except  under  subpoena  or  court  order,  even  after  termination of the agency relationship; and
  7. Unless agreed otherwise in writing, 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.

None of these affirmative duties of an agent may be waived,  except #7. The affirmative  duty listed in  #7 can only be  waived by  written agreement between buyer and agent.

Under Oregon law, a Buyer’s Agent may show properties in which the buyer is interested to other  prospective buyers  without breaching an 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, including but not limited to investigation of the condition  of property,  the legal  status  of the title  or the  seller’s  past conformance  with law.

 

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 and buyer(s).

Disclosed Limited Agents have the following duties to their clients:

  1. To the seller, the duties listed above for a seller’s agent; and
  2. To the buyer, the duties listed above for a buyer’s agent;
  3. To both buyer and seller, except with express  written  permission  of the  respective  person,  the duty  not to  disclose  to  the other person:
    1. That the seller will accept a price lower or terms less favorable than the listing price or terms;
    2. That the buyer will pay a price greater or terms more favorable than the offering price or terms; or
    3. Confidential information as defined

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise.

When different agents associated with the same Principal Broker (a real estate agent who supervises other agents) establish agency relationships with different parties to the same transaction, only the Principal Broker will act as a Disclosed limited Agent for both buyer and seller. If applicable, see Disclosed Limited Agency Agreement for identification of Disclosed Limited Agent. The other agents continue to represent only the party with whom the agents have already established an agency relationship unless all parties agree otherwise in writing. The Principal Broker and agents representing either seller or buyer shall owe the following duties to the seller and buyer:

  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

No matter whom they represent, an agent must disclose information the agent knows or should know that failure to disclose would constitute fraudulent misrepresentation.

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 agent, to represent you as a Seller’s Agent, Buyer’s Agent, or Disclosed Limited Agent,  you should have a specific discussion with the agent about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make an agent your agent without the agent’s knowledge and consent,  and an agent  cannot  make you their client without your knowledge and consent.

This form has been licensed for use solely by Jeffrey Capen pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC. Provided by Oregon Real Estate Forms, LLC 2019       www.orefonline.com       OREF 042