January 11th, 2012 at 6:46 pm
As you know, it is very common these days for agents to work with a partner or as part of a team. In many of those cases, while multiple licensees are actually working on the transaction, the documents only have the name of the lead or main agent. As a result, while the client may thing that Jane Doe is doing all the work on their deal, in truth John Doe is also very involved. When that happens, unfortunately, the client is often unhappy, especially if something goes wrong. They believe they hired a specific person, and want her handling the transaction unless you explain otherwise. In order to help you avoid this problem, CAR released a new form in November, the Additional Broker or Agent Acknowledgment (Form ABAA). This document provides you with paragraphs to make the four following disclosures: 1) To advise the seller that there are multiple brokers representing her (paragraph 1); 2) To advise the buyer that there are multiple brokers representing him (paragraph 2); 3) To advise the seller that there are multiple licensees affiliated with the same broker working with her (paragraph 3); and 4) To advise the buyer that there are multiple licensees affiliated with the same broker working with him (paragraph 4). Obviously, since we are the client’s fiduciary, they are entitled to know these facts.
In truth, our ultimate concern is that your client is aware of who is servicing their listing or transaction. While this form is a good way to make that disclosure, it is not required. If you know that more than one person or broker will be servicing a listing, you can have both names put in the Listing Agreement. Similarly, you can make multiple agency disclosures to a buyer identifying all the licensees and brokers working on their behalf. How you make the disclosure doesn’t really matter, as long as the disclosure is made. That being said, CAR created this form to make it easier for you. As a result, please be sure that in the appropriate circumstances your client knows everyone who is working on their behalf. You can use the ABAA or another form. Just use something.
s always, please feel free to contact us with any questions you may have.
Like what you see here? Sign up for more! Our free e-newsletter informs you of listings in your community, insider real estate tips, the latest in home trends, and more.
