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November 9, 2018

Agency Disclosure and Buyer Contracts

Agency Disclosure and Buyer Contracts are not the same things. One is disclosure; the other is a commitment.

Know the Difference

California was the first state to enact Agency Disclosure and getting agency disclosure legislation enacted in California was about a 12-year process, going back to the 1970s, with, at one time three separate agency disclosure law proposals. In 1986 the California legislature passed the agency disclosure law unanimously. The legislature granted the real estate industry a grace period until the beginning of 1988 to prepare to implement the disclosure law. The California legislature mandated that persons selling residential real estate must give agency disclosure information to the parties involved in real estate transactions.

This information must include the possible agency relationships that the real estate firms involved in the transaction may have with their clients.

The Agency Disclosure Form's content is mandated by the legislation. The form, entitled Disclosure Regarding Real Estate Agency Relationships, lists the three-way a person can have representation as a potential real estate client.

1. Exclusively by a seller's agent.
2. Exclusively by a buyer's agent.
3. By an agent representing both seller and buyer.

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