March 30th, 2011 at 11:19 pm
With that in mind, what should you know about paragraph 2? First, section B of that clause makes the same substantive disclosures as CAR Form DA, the Disclosure Regarding the Representation of More Than One Buyer or Seller. As a result, and given the fact that this disclosure is also in the Listing Agreement, we no longer need Form DA for our files.
Most Importantly, section C of this paragraph contains the actual disclosures regarding which broker represents which principal. Remember, this is the only place that this disclosure is made. It is not part of the Agency Disclosure form and, with regard to agency, is really the only important disclosure we make. As importantly, this section is one of the first looked at by plaintiff’s lawyers. As you know, our duties to our client are defined, in large part, by who we represent. Therefore, if this section is filled our incorrectly, it may give the wrong impression to the parties and create extra duties on our part. It may also, as a result, give arguments to a plaintiff’s lawyer that they should not have. For example, if we only represent the buyer, but the RPA says otherwise, or is not clear, the seller’s lawyer can argue that we also represented her client and therefore owed the seller a fiduciary duty. Obviously, that type of mistake would have significant liability consequences. So please recognize the reason that CAR moved this paragraph up front. They did it because the paragraph and its disclosures are real important to your clients and their lawyers. And, with that in mind, please take the time to fill it out carefully and correctly. There is no telling how much future time and money you will ultimately be saving yourself. As always, please let us know if you have any questions.
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