casemark/real-estate-agency-disclosure

Real Estate Agency Disclosure

Produces a jurisdiction-compliant disclosure establishing representation relationships and fiduciary duties before parties commit to a residential real estate transaction.

Required Inputs

1. Jurisdiction — state where property is located (drives all statutory requirements)
2. Parties — legal names of buyer(s), seller(s), licensee(s); brokerage names; license numbers
3. Transaction — property address; purchase or listing
4. Agency model — buyer's agent, seller's agent, dual agency, designated agency, or transaction brokerage

Workflow

1. Research Jurisdiction Rules

• Identify the state statute or regulation mandating the disclosure
• Confirm the delivery trigger (typically first substantive contact — verify state-specific timing)
• Determine permissible agency models and whether the state requires verbatim statutory language

2. Draft Document

Header: document title (use jurisdiction-mandated title if required), disclosure date, all party names with brokerage and license numbers.

Statutory basis: cite the specific statute, state the delivery trigger, note any timing variations.

Agency relationship definitions — include all models permitted in the jurisdiction:

| Role | Represents | Core Duties | |---|---|---| | Seller's Agent | Seller exclusively | Loyalty, confidentiality, best price/terms for seller | | Buyer's Agent | Buyer exclusively | Loyalty, confidentiality, best price/terms for buyer | | Dual Agent | Both parties | Neutrality; no advocacy or cross-disclosure of confidential info | | Designated Agent | Respective client (separate agents, same brokerage) | Full fiduciary to each; supervising broker is dual agent | | Transaction Broker | Neither party | Honesty, material fact disclosure, ministerial care |

Distinguish client (full fiduciary) from customer (honest dealing, no advocacy).

Core fiduciary duties where full agency applies: loyalty · confidentiality · disclosure · obedience · reasonable care · accounting.

3. Address Dual Agency / Alternatives

• [ ] State permits dual agency?
• [ ] Informed written consent required?
• [ ] Transaction broker/facilitator role available?
• [ ] Designated agency required in lieu of dual agency?

If prohibited: state explicitly and identify the required alternative. If permitted: include conspicuous warning that the agent cannot fully advocate for either party; consent required beyond this disclosure.

4. Acknowledgment Language

The disclosure must state:

• Receipt does not create an agency relationship
• Agency requires a separate written agreement
• Parties may choose any available representation type or proceed unrepresented
• Parties may seek independent legal counsel

5. Agency Election

Include on-form selection if jurisdiction requires:

• [ ] Seller's Agency
• [ ] Buyer's Agency
• [ ] Dual Agency (where permitted)
• [ ] Designated Agency
• [ ] Transaction Brokerage

6. Signature Blocks

Separate block per buyer, seller, and licensee: printed name, signature, date, license number and brokerage (licensees only). Include caption confirming receipt and understanding.

• Check whether jurisdiction requires witness signatures or notarization
• If electronic: confirm UETA / E-SIGN compliance [VERIFY]

Pitfalls

• Verbatim language — many states require exact statutory text; do not paraphrase without confirming flexibility
• Timing errors — cite the applicable delivery trigger explicitly; late disclosure can void the relationship
• Dual agency inadequacy — insufficient disclosure of limitations can void consent and create liability
• No recommendation — the disclosure informs of options; it must not advise which representation type to select
• NAR vs. statute — follow NAR guidelines but state statutory requirements control where they diverge
• [VERIFY] all statutory citations against the current state code and real estate commission regulations before use in an actual transaction