Oregon Real Estate Agency Disclosure Pamphlet

Oregon Real Estate Agency

Disclosure Pamphlet

ORS 863-015-215 (4)

This pamphlet describes agency relationships and the duties and responsibilities of real estate licensees in Oregon. This pamphlet is informational only and neither the pamphlet nor its delivery to you may be construed to be evidence of intent to create an agency relationship.

What is Agency?

An agency relationship is a voluntary legal relationship in which a real estate licensee (the agent), agrees to act on behalf of a buyer or a seller (the client) in a real estate transaction.

Real Estate Agency Relationships

Oregon law provides for three types of agency relationships between real estate agents and their clients:

Sellers Agent-Represents the seller only;

Buyers Agent-Represents the buyer only;

Disclosed Limited Agent-Represents both the buyer and seller, or multiple buyers who  wants to purchase the same property. This can be done only with the written permission of both clients.

The actual agency relationship 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.

Duties and Responsibilities of an Agent Who Represents Only the Seller or Only the Buyer

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 agrees to represent a buyer acts only as the buyers agent unless the buyer agrees in writing to allow the agent to also represent the seller. An agent who represents only the seller or only the buyer owes the following affirmative duties to their client, as well as other parties and their 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 in a timely manner whether or not the sellers property is subject to a contract for sale or the buyer is already a party to a contact to purchase;
  3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party;

In addition to Nos. 1, 2, and 3, above, an agent who represents only the seller or only the buyer owe the following affirmative duties only to their client:

  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 client;
  3. To be loyal by not taking action that is adverse or detrimental to the clients interest in a transaction;
  4. To disclose in a timely manner any conflict of interest, existing or contemplated;
  5. To advise the client 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 client except under subpoena or court order, even after termination of the agency relationship; and
  7. When representing a seller, to make a continuous, good faith effort to find a buyer for the property, except that a sellers agent is not required to seek additional offer to purchase the property while the property is subject to a contract for sale. When representing a buyer, to make a continuous, good faith effort to find property for the buyer, except that buyers agent is not required to seek additional properties for the buyer while the buyer is subject to a contract for purchase or to show properties for which there is not written a agreement to pay compensation to the buyers agent; and,

None of the above affirmative duties of an agent may be waived, except #10, which can only be waived by written agreement between client and agent.

Under Oregon law, a sellers 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. Similarly, a buyers agent may show properties in which the buyer is interested to other prospective buyers without breaching any affirmative duty to the buyer.

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

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, buyer(s) and their agent.

When different agents associated with the same real estate firm establish agency relationships with different parties to the same transaction, only the principal broker (the broker who supervises the other agents) 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 agent already has an established agency relationship unless all parties agree otherwise in writing. The supervising principal broker and the agents representing either the seller or the buyer have the following duties to the buyer and seller:

  1. To disclose a conflict of interest in writing to all parties;
  2. To take no action that is adverse or detrimental to either partys interest in the transaction; and
  3. To obey the lawful instruction of both parties.

An agent active under a Disclosed Limited Agency agreement has the same duties to the client as when representing only a seller or only a buyer, except that the agent may not, without written permission, disclose any of the following:

  1. That the seller will accept a lower price or less favorable terms than the listing price or terms;
  2. The buyer will pay a greater price or more favorable terms than the offering price or terms;
  3. In transactions involving one-to four residential units only, information regarding the real property transaction including, but not limited to, price, terms, financial qualifications or motivation to buy or sell.

You are encouraged to discuss the information in this pamphlet with the agent delivering this to you. If you intend for that agent, or any other Oregon real estate agent, to represent you as a Sellers Agent, Buyers Agent or Disclosed Limited Agent, you should have a specific discussion with him/her about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make a licensee your agent without their knowledge and consent, and an agent can not make you their client without your knowledge and consent.

For A Printable (PDF) Version-Click Here

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