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Agency Disclosure

Click here to link to the State of Oregon Real Estate Agency disclosure pamphlet or see below:

Revised 4/8/2013

INITIAL AGENCY DISCLOSURE PAMPHLET INSTRUCTIONS

A licensed real estate broker or principal real estate broker is required to give a copy of an

Initial Agency Disclosure Pamphlet to each consumer the broker will represent. The

pamphlet describes the legal relationship between a broker and the consumer when the broker

acts as the consumer’s “agent.”

Real estate brokers and principal real estate brokers have legal obligations, called affirmative

duties, to both buyers and sellers in a real estate transaction.

Oregon Revised Statute (ORS) 696.805 lists the affirmative duties of a licensed real estate

broker or principal real estate broker acting as a seller’s agent.

The affirmative duties of a broker or principal broker acting as a buyer’s agent are found in

ORS 696.810.

ORS 696.815(1) allows a real estate licensee to represent both the seller and the buyer in a

real estate transaction under a disclosed limited agency agreement, provided there is full

disclosure of the relationship under the agreement.

Oregon Administrative Rules (OAR) adopted by the Oregon Real Estate Agency provide the

form and content of the disclosures and the related pamphlet. OAR 863-015-0215 is set forth

below for the convenience of licensees. A real estate broker or principal real estate broker

may copy and use the information set out below after the broken line as the required Initial

Agency Disclosure Pamphlet.

863-015-0215

Initial Agency Disclosure Pamphlet

(1) An agent must provide a copy of the Initial Agency Disclosure Pamphlet provided

for in section (3) of this rule at first contact with each represented party to a real

property transaction.

(2) An agent need not provide a copy of the Initial Agency Disclosure Pamphlet to a

party who has, or may be reasonably assumed to have, already received a copy of

the pamphlet from another agent.

(3) The Initial Agency Disclosure Pamphlet must be printed in substantially the

following form:

Revised 4/8/2013

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INITIAL AGENCY DISCLOSURE PAMPHLET

Consumers: This pamphlet describes the legal obligations of real estate licensees in Oregon.

Real estate brokers and principal real estate 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 a broker

or a principal broker.

Real Estate Agency Relationships

An “agency” relationship is a voluntary legal relationship in which a licensed real estate

broker or principal broker (the “agent”) 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 clients:

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 all 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, licensees must maintain confidential information about their clients. “Confidential

information” is information communicated to a real estate licensee or the licensee’s agent 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:

(a) The buyer instructs the licensee or the licensee’s agent to disclose about the buyer to

the seller, or the seller instructs the licensee or the licensee’s agent to disclose about

the seller to the buyer; and

(b) The licensee or the licensee’s agent knows or should know failure to disclose would

constitute fraudulent representation.

Duties and Responsibilities of a 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;

Revised 4/8/2013

(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 transaction 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 sale.

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 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 a 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

Revised 4/8/2013

(3) To disclose material facts known by the agent and not apparent or readily

ascertainable to a party.

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;

(2) To the buyer, the duties listed above for a buyer’s agent; and

(3) To both buyer and seller, except with express written permission of the respective

person, the duty not to disclose to the other person:

(a) That the seller will accept a price lower or terms less favorable than the

listing price or terms;

(b) That the buyer will pay a price greater or terms more favorable than the

offering price or terms; or

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(c) Confidential information as defined above.

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 licensee 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 the buyer

and seller. 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 real estate broker and the real estate licensees 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 instructions of both parties.

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 licensee delivering this

pamphlet to you. If you intend for that licensee, or any other Oregon real estate licensee, 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 a licensee your agent

without the licensee’s knowledge and consent, and an agent cannot make you a client without

your knowledge and consent.