Buyer Representation

Buyer Representation

With any real estate transaction, you need a professional who is looking out for your best interests. This is especially true in an REO property transaction. As with a conventional property transaction, a Buyer Agent can assist you with:

  • Planning
  • Locating property
  • Negotiating price and terms
  • Financing
  • Inspections
Agency Disclosure
Before you enter into a discussion with a real estate agent regarding a real estate transaction, you should understand what type of agency relationship you wish to have with that agent. Florida state law requires real estate licensees who are acting as agents of buyers or sellers of property to advise the potential buyers or sellers with whom they work of the nature of their agency relationship and the rights and obligations it creates.

Click here to view/print the Florida State Agency Disclosure form.
 
Agency Disclosure in Florida
What the Florida Law requires on Agency Disclosure is found on the “Official Manual of The Florida Real Estate Commission” Title 62-Chapter 13-Section 405.

[Disclosure of Agency] (a) “If a licensee personally assists a prospective buyer or seller in the purchase or sale of a property, and such buyer or seller is not represented by this or any other licensee, the licensee shall verbally disclose to such buyer or seller the licensee’s facilitator, agent, subagent, or designated agent status in the transaction before any real estate services are provided.”
(WHO) – a licensee (WHAT) – must disclose how they are working or will be working in a transaction (WITH) – buyers and sellers not already represented by another licensee (WHEN) – before any real estate services are provided (HOW) – verbally. [ Written Disclosure ] (b) “The disclosure of agency or facilitator status, as provided in subdivision (a) must be confirmed in writing with an unrepresented buyer prior to the preparation of an offer to purchase. The above disclosure of agency status must be confirmed in writing with an unrepresented seller prior to execution of a listing agreement or presentation of an offer to purchase, whichever comes first. Following delivery of the written disclosure, the licensee shall obtain a signed receipt for such disclosure from the party to whom it was provided.”

(WHO) – a licensee (WHAT) – must disclose how they are working or will be working in a transaction (WITH) – buyers and sellers not already represented by another licensee (WHEN) – prior to preparation of an offer for customers or buyers; or prior to the execution of a listing agreement for sellers; or prior to the presentation of an offer to purchase to an unrepresented seller (FSBO) (HOW) – in writing.

THE LAW DOES NOT STATE A REQUIREMENT FOR A PARTICULAR FORM OR TYPE OF FORM TO BE USED FOR THE WRITTEN DISCLOSURE OF AGENCY STATUS.

The Forms “Agency Disclosure Form As Required By Florida Law”, “Working With A Real Estate Professional”, and “Confirmation Of Agency Status” are all acceptable method to satisfy the written agency disclosure requirement. A disclosure form developed by licensee or the Broker would be an acceptable method to satisfy the written agency disclosure requirement. A simple statement of the licensee’s agency status in a real estate transaction written on the company letterhead, signed by the licensee and the person to whom the licensee is providing real estate services will satisfy the written agency disclosure requirement. Remember, the law simply states that a licensee must confirm in writing that the consumer was told how the licensee would be working in a real estate transaction and to whom the licensee would be providing real estate services and to whom the licensee would be working with as a non-agent Transaction Broker/Facilitator or working for as an agent.

(c) The disclosure of agency or facilitator status, as provided in subdivision (a), shall not be construed as, or be considered a substitute for, a written agreement to establish an agency relationship between the broker and a party to a transaction as referenced in TCA 62-13-406.

What does the LAW require of a licensee when they are working with another licensee in the same real estate transaction?

[Working With Other Licensees ] (d) “Upon initial contact with any other licensee involved in the same prospective transaction, the licensee shall immediately disclose such licensee’s role in the transaction, including any agency relationships, to this other licensee.”
(WHO) – a licensee (WHAT) – must disclose how they are working or will be working in a transaction (WITH) – any other licensee involved in the same prospective transaction (WHEN) – immediately (at first contact with the other licensee ) (HOW) – Verbally.

What happens if your role changes during the transaction?
[Working With Other Licensees ] (d) “If the licensee’s role changes at any subsequent date, such licensee shall immediately notify any other licensees and any parties to the transaction relative to such change in status.”
(WHO) – a licensee (WHAT) – must disclose any change in status (WITH) – any other licensee or other parties (not represented by another licensee) involved in the same transaction (WHEN) – immediately upon changing your status) (HOW) – verbally.

The Florida Agency Law does not require licensees to share a written agency disclosure with anyone except the person with whom they are providing real estate services. Licensees are simply required to tell other parties to a transaction (including other licensees) of their agency status. Written agency disclosure or changes in agency status is not required between licensees or other parties in a transaction. However, REALTORS’ are required by Standard of Practice 16-10 of the REALTORS® Code of Ethics to provide written confirmation of their Agency Status to other REALTORS® involved in a real estate transaction no later than the execution of a purchase agreement or lease. Florida Agency Law does not require licensees to give confirmation of their Agency Status to other licensees with whom they are cooperating. The REALTORS® Code of Ethics requires only REALTORS® to so. The REALTORS® Code does not require licensees to share their Agency Disclosure Form. It requires only that REALTORS® give a written statement of their agency status. REALTORS® are free to use their Agency Disclosure Form, or they could simply give a written statement of their agency status.

A licensee, who uses the TAR “Confirmation of Agency Status Form” for their Agency Disclosure, should notice that the form does not request the signatures of both the buyer and seller involved in the transaction. The form requests only the signature of either the Buyer OR Seller, whichever one the licensee is working with as a non-agent Transaction Broker/Facilitator or working for as an agent.

There is neither a requirement nor provision in Florida Agency Law for a licensee to have all parties (both buyers and sellers and all real estate licensees) involved in a real estate transaction to sign the same agency disclosure form. If a licensee or real estate firm refuses to present a cooperating licensee’s Offer to Purchase or Lease to their client until they receive a written copy of the licensee’s Agency Disclosure, they are in violation of multiple laws and rules. ( Federal Law – Title VIII, Florida Law – TCA 62-1311, Florida Real Estate Commission Rules – 1260-2-08, The REALTOR®S Code of Ethics – Article 1 Standard of Practice 1-6, and the MLS Rules – Section 2.2 ). These Laws and Rules require that all Written Offers to Purchase or Lease must be presented. When a listing company refuses to present an Offer to Purchase or Lease, the licensee has been released to contact the listing company’s client directly to make arrangements to present their Buyer or Customer’s Offer or Lease. If this is the course of action a licensee has to pursue, the licensee will not be in violation of any Laws, Rules, or Code of Ethics. ( Texas is currently the only state with a law that specifically prohibits this action.)

While some licensees and real estate companies may desire a written agency disclosure from everyone involved in a real estate transaction, this desire is not a requirement and cannot impede the presentation of an Offer to Purchase or a Lease nor the negotiation or completion of the transaction.

READ YOUR LICENSEE LAW MANUAL BEFORE YOU ACT ON WHAT YOU ARE TOLD BY OTHERS. IF SOMEONE TELLS YOU WHAT THEY THINK YOU SHOULD BE DOING IN REAL ESTATE, OR HOW AND WHEN THEY THINK YOU SHOULD BE DOING IT, ASK THEM TO SHOW YOU WHERE IT IS FOUND IN THE LICENSE LAW MANUAL, OR LOOK IT UP YOURSELF.


If you have questions or want assistance in finding and purchasing a property, contact us at info@pelletierreo.com.
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