In Canada, you're required to disclose any relationship you have with EITHER the buyer or seller. It's one of the rules we have to observe all the time.
It will be your local/state real estate board that determines whether you're subject to the same principle. Someone there should be able to advise you.

Duncan

I found this very quickly in the MA rules and regs - for whatever reason, it's pretty clear - you should have disclosed.

I'm wondering why you didn't and also why the other agent now feels it was a problem?


"11(a) A broker or salesperson shall not buy, sell, rent, mortgage, or acquire any interest in, or represent a client in the buying, selling, renting or exchange of real property in which the broker or salesperson or his/her kin has a personal financial interest unless the broker or salesperson shall fully disclose in writing to all parties to the transaction the nature of his/her interest and unless the parties shall provide the broker or salesperson with written acknowledgment of such disclosure."

I don't get it, but maybe I'm naive. Did the seller care who bought the property? Maybe she came through an open house and didn't mention it to the agent? Sounds like sour grapes.

I would have to see it specifically in writing from the law book.

Stan

Only your state real estate commission can answer that question. The whole "relative" issue has to be defined, if such a disclosure is required. Though your child would certainly be a relative, how far out does "relative" extend?

Any true buyers agent is in an advocacy position that has to be disclosed. It seems to me that disclosing your buyer agent status should be enough in all cases except those in which you are a principal party. No matter what we think (or what the other agent thinks), if your state regulations do not specifically require familial disclosure, then the buyer's agency disclosure should suffice.

Having said that, though, I must add that the scenario is different if you had anything to do with setting the listing price of the property. I did disclose very clearly the fact that the buyer was my son and the buyers' agent was my daughter when my son purchased one of my own REO listings earlier this year. The fact that our last names were all the same should have been a clue, but I went out of my way to disclose the family relationships at more than one point during the transaction. The seller was even a bit confused about my repetition.

Oh my gosh! Unless that's defined more fully, this is a TERRIBLE provision, and your state commission needs to work on it! Really, do you have to disclose that your second cousin's wife owns a partial interest in this property? If you are representing a property owned by an LLC or a corporation, for interest, you might not even know who all of the owners are.

Here is what our COE says:
"Article 4
REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)

• Standard of Practice 4-1
For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)"

I agree..."kin" is sort of a broad term, eh? But there it is. \

In the case of the OP though the buyer was her daughter so there would certainly be no question she needed to disclose as she is in MA and this is from the MA RE board.

What difference it makes in the long run and why anyone is complaining about it, I'm not sure!

Call the Massachusetts real estate commission and ask; they're governing authority where you are.

In most states you have to disclose if you're representing someone you're closely related to, i.e. a daughter.

http://budurl.com/hlwz

5 D. seems applicable to your transaction.


5. Disclosures

A. Brokerage relationship disclosure on all property types for purchase or sale.

1. Providing written disclosure at first personal meeting to discuss a specific property with a prospective buyer or seller.
2. Buyer / Seller Agent
a. Using the State mandated form
3. Dual Agent
a. Obtaining written consent and notice

B. Written Fee disclosure to prospective residential tenants

C. Disclosure of all fees and commissions

1) Net listings illegal for sales or rentals

D. Disclosure of broker or salesperson personal or familial interest

Legality aside, it is always a smart thing to disclose familial relationships.

In Manitoba we have to disclose a relationship no mater which "side" we are on.

Full Disclosure: One should bear in mind, that the courts may have a different view on what is "adequate disclosure" than some real estate organizations in various jurisdictions.

At one time in some jurisdictions where a real estate agent has an obligation to make full,timely and ongoing disclosure, the local real estate organizations took it upon themselves to determine, what in their mind constituted "adequate disclosure".

The end result was that both clients and customers alike (Consumers) ended up receiving what has been described politely as "selective disclosure" containing only to the "positive features" and with no mention whatsoever of the "negative features" as may be encountered or involved.

Therefore, Plaintiff's have relied on the legal system to make the final determination of whether the plaintiff received full,timely and ongoing disclosure of all material facts or whether the plaintiff received inadequate disclosure.

The Risk to agents stems from the term "Material Facts" and its relevance to adequate disclosure, because the failure to disclose what may be deemed a "material fact" negates the true meaning of "Full Disclosure".

This, then gives rise to two issues:
_"What is a material fact" ?, and
_would it impact of the plaintiff's ability to make an informed decision ?

The answer lies in the facts surrounding the case and the testimony of the plaintiff, claiming that the undisclosed facts were definitely material (to him) and deprived him of making an informed decision, with the impact being that had he received the required full disclosure, he would have discontinued negotiations and withdrawn from the transaction, etc, etc.

Personally, I like to include everything in my disclosure,but the proverbial Kitchen Sink and as always follow the recommended four D's in relation to disclosure.

a) Decide what is to be done
b) Disclose what is to be done
c) Do what is to be done
d) Document it

I have also found that foresight is greater than hindsight and a lot less expensive.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information

You are required to disclose those relationships that you are aware of. If an aunt is a part owner of a large corportion and you are not aware of it, you would not be required to disclose it.


If she was one of three owners of a small local LCC, I would suspect that all parties (and the state and the judge) would expect you to be aware of that and disclose it.

I always tell all the new agents that you can avoid issues, ethic complaints, and lawsuits by doing two things. Disclose everything that might at all relate to the transaction and also get your cliet to sign and date everything that transfers from you to them. I see agent constantly with issues that costs them their E&O deductable due to that fact that they don't keep a signed/dated paper trail of all communications.

This is clearly the response of an experienced and knowledgeable professional.



The agents who pay close attention to this professional's advice will certainly extend the life of their career and could save themselves from unnecessary grief and financial costs.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information

Is it true you need a CONTRACT to represent a buyer? Buyer agency is new to me.