There are three basic forms of agency relationships:  seller's agent, buyer's agent and an agent representing both buyer and seller with the informed consent of both parties.  It enumerates the fiduciary duties connected with each type of representation, provides an acknowledgment form for prospective buyers and sellers and a second acknowledgment for both the seller and buyer to sign at contract.

Detail Definitions

The disclosure will apply only to residential real estate transactions of one to four family dwellings.  It also provides that agency relations may be modified by specific agreements between the agent and the seller and/or buyer.
 

MULTIPLE LISTINGS

The advantage to the owner is that it stimulates the listing broker to be diligent in his efforts to make a sale and commands the services of many brokers.....the multiple listing advantages is two-fold.  The broker can promise the owner multiple services in finding a buyer, and if he is unable to sell the property himself, he may be able to participate in the commission if the property is sold by another member of the plan.

No one other than the contracting broker......not even the owner......has the right to sell the property.  The contracting broker is legally entitled to the commission if anyone sells the property during the period of time specified in the contract.  Preferred over all others.

EXCLUSIVE LISTING

Gives the broker the exclusive right to sell a specified property during a stated period of time.  It excludes all other brokers during the term of the contract......but does not debar the owner himself from selling the property to any prospect not produced by the broker.

The advantage of the Exclusive Contract to the owner is that he has the right to expect the contracting broker to devote himself diligently to whatever sales effort may be necessary to effect a sale, but he is himself free to sell the property on his own without having to pay the broker a commission.  As in an Open Listing, the broker should report in writing to the owner the name of each prospect to whom he shows the property and state in his report the date on which the property was shown.  This protects the broker if the owner himself makes the sale to a prospect that the broker has produced.  Also it keeps the owner aware of the fact that he broker is actually making efforts to sell the property.

OPEN LISTING

There are brokers who prefer the Open Listing because they do not want to assume the obligation of spending time and money in trying to make a sale which they would feel obligated to do under an exclusive contract. They can build a large file of open listings and wait for buyers to take the initiative in seeking properties they want to acquire.

The disadvantage of an Open Listing to the broker is that he may spend time and money in finding a prospect, showing the property, and negotiating the sale only to find before the sales contract is signed that some other broker has completed the deal or that the owner himself has committed himself to a buyer.

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