Berkshire Hathaway HomeServices Fox & Roach Realtors
5501 West Avenue, Ocean City
399-0066
Consumer Information Statement on New Jersey Real Estate Relationships
In New Jersey, real estate licensees are required to disclose how they intend to work with
buyers and sellers in a real estate transaction. (In rental transactions, the terms
"buyers" and "sellers" should read as "tenants" and "landlords," respectively.)
1. AS A SELLER'S AGENT OR SUBAGENT, I, AS A LICENSEE, REPRESENT THE SELLER AND ALL
MATERIAL INFORMATION SUPPLIED TO ME BY THE BUYER WILL BE TOLD TO THE SELLER.
2. AS A BUYER'S AGENT, I, AS A LICENSEE, REPRESENT THE BUYER AND ALL MATERIAL INFORMATION
SUPPLIED TO ME BY THE SELLER WILL BE TOLD TO THE BUYER.
3. AS A DISCLOSED DUAL AGENT, I, AS A LICENSEE, REPRESENT BOTH PARTIES, HOWEVER, I MAY
NOT, WITHOUT EXPRESS PERMISSION, DISCLOSE THAT THE SELLER WILL ACCEPT A PRICE LESS THAN
THE LISTING PRICE OR THAT THE BUYER WILL PAY A PRICE GREATER THAN THE OFFERED PRICE.
4. AS A TRANSACTION brOKER, I, AS A LICENSEE, DO NOT REPRESENT EITHER THE BUYER OR THE
SELLER. ALL INFORMATION I ACQUIRE FROM ONE PARTY MAY BE TOLD TO THE OTHER PARTY.
Before you disclose confidential information to a real estate licensee regarding a real
estate transaction, you should understand what type of business relationship you have with
that licensee. There are four business relationships: (1) seller's agent; (2) buyer's
agent; (3) disclosed dual agent; and (4) transaction broker. Each of these relationships
imposes certain legal duties and responsibilities on the licensee as well as on the seller
or buyer represented. These four relationships are defined in greater detail below.
Please read carefully before making your choice.
SELLER'S AGENT
A seller's agent WORKS ONLY FOR THE SELLER and has legal obligations, called fiduciary
duties, to the seller. These include reasonable care, undivided loyalty, confidentiality
and full disclosure. Seller's agents often work with buyers, but do not represent the
buyer's. However, in working with buyers a seller's agent must act honestly. In dealing
with both parties, a seller's agent may not make any misrepresentations to either party
on matters material to the transaction, such as the buyer's financial ability to pay, and
must disclose defects of a material nature affecting the physical condition of the
property which a reasonable inspection by the licensee would disclose.
Seller's agents include all persons licensed with the brokerage firm which has been
authorized through a listing agreement to work as the seller's agent. In addition, other
brokerage firms may accept an offer to work with the listing broker's firm as the seller's
agents. In such cases, those firms and all persons licensed with such firms are called
"sub-agents." Sellers who do not desire to have their property marketed through subªagents should so inform the seller's agent.
BUYER'S AGENT
A buyer's agent WORKS ONLY FOR THE BUYER. A buyer's agent has fiduciary duties to the
buyer which include reasonable care, undivided loyalty, confidentiality and full
disclosure. However, in dealing with sellers a buyer's agent must act honestly. In
dealing with both parties, a buyer's agent may not make any misrepresentations on matters
material to the transaction, such as the buyer's financial ability to pay, and must
disclose defects of a material nature affecting the physical condition of the property
which a reasonable inspection by the licensee would disclose.
A buyer wishing to be represented by a buyer's agent is advised to enter into a separate
written buyer agency contract with the brokerage firm which is to work as their agent.
DISCLOSED DUAL AGENT
A disclosed dual agent WORKS FOR BOTH THE BUYER AND SELLER. To work as a dual agent, a
firm must first obtain the informed written consent of the buyer and seller. Therefore,
before acting as a disclosed dual agent, brokerage firms must make written disclosure to
both parties. Disclosed dual agency is most likely to occur when a licensee with a real
estate firm working as a buyer's agent shows the buyer properties owned by sellers for
whom that firm is also working as a seller's agent or sub-agent.
A real estate licensee working as a disclosed dual agent must carefully explain to each
party that, in addition to working as their agent, their firm will also work as the agent
for the other party. They must also explain what effect their working as a disclosed dual agent will have on the fiduciary duties their firm owes to the buyer and to the seller.
When working as a disclosed dual agent, a brokerage firm must have the express permission
of a party prior to disclosing confidential information to the other party. Such
information includes the highest price a buyer can afford to pay and the lowest price the
seller will accept and the parties' motivation to buy and sell. Remember, a brokerage
firm acting as a disclosed dual agent will not be able to put one party's interests ahead
of those of the other party and cannot advise or counsel either party on how to gain an
advantage at the expense of the other party on the basis of confidential information
obtained from or about the other party.
If you decide to enter into an agency relationship with a firm which is to work as a
disclosed dual agent, you are advised to sign a written agreement with that firm.
TRANSACTION brOKER
The New Jersey Real Estate Licensing Law does not require licensees to work in the
capacity of an "agent' when providing brokerage services. A transaction broker works with
a buyer or a seller or both in the same sales transaction without representing anyone.
A TRANSACTION brOKER DOES NOT PROMOTE THE INTERESTS OF ONE PARTY OVER THOSE OF THE OTHER
PARTY TO THE TRANSACTION. Licensees with such a firm would be required to treat all
parties honestly and to act in a competent manner, but they would not be required to keep
confidential any information. A transaction broker can locate qualified buyers for a
seller or suitable properties for a buyer. They can then work with both parties in an
effort to arrive at an agreement on the sale or rental of real estate and perform tasks
to facilitate the closing of a transaction.
A transaction broker primarily serves as a manager of the transaction, communicating
information between the parties to assist them in arriving at a mutually acceptable
agreement and in closing the transaction, but cannot advise or counsel either party on
how to gain an advantage at the expense of the other party. Owners considering working
with transaction brokers are advised to sign a written agreement with that firm which
clearly states what services that firm will perform and how it will be paid. In addition,
any transaction brokerage agreement with a seller or landlord should specifically state
whether a notice on the property to be rented or sold will or will not be circulated in
any or all Multiple Listing System(s) of which that firm is a member.
YOU MAY OBTAIN LEGAL ADVISE ABOUT THESE BUSINESS RELATIONSHIPS FROM YOUR OWN LAWYER.
THIS STATEMENT IS NOT A CONTRACT AND IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY.
DECLARATION OF BUSINESS RELATIONSHIP
I, James I. Marshall, as an authorized representative of Berkshire Hathaway HomeServices Fox & Roach REALTORS, intend, as of
this time, to work with you as a:
(indicate one of the following)
o seller's agent o buyer's agent
o seller's agent and disclosed dual agent if the opportunity arises.
o buyer's agent and disclosed dual agent if the opportunity arises.
o transaction broker
DATE_______________________________
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