In California, when working as an exclusive buyer's agent, when should the Agency Disclosure form be signed buy the buyer and sent to the seller? We have an offer in, but this form was not requested.

Cannot answer to California requirements but in Minnesota, Agency Disclosure is made at the first substantial contact with the consumer. Substantial contact would be prior to discussing price, terms, motivation with consumer. The consumer reads the disclosure and signs it. This disclosure is placed in the file. Commerce department will randomly check broker transaction files specifically looking for this disclosure. Fines apply if there are found to be none.

Generally, this disclosure is not submitted with offers.

Thanks

I would ask the buyer to sign it right away, that way they can't come back at you and say they didn't understand what the relationship was. When you submit the offer its not necessary for the seller to have the agency disclosure untill the offer is accepted.

In California, can an agent have a buyer agency (agent/fiduciary) relationship with just a verbal agreement, or does it have to be in writing?

LOCALLY The requirement is to make written disclosure at the earliest practicable opportunity utilizing your [b]best efforts[/b] to obtain written acknowledgement of the disclosure and before any offer is made.

Interestingly, if my memory serves correctly, it was in the early 80's THAT the common law of agency in relation to the real estate industry was brought to the fore in a successful California lawsuit by a buyer against a real estate agent for the breach of his fiduciary duty to his principal, which the agent denied arguing that he was not the agent of the buyer, but that as the co-operating broker in the transaction, he was the subagent of the listing broker and seller, but the court found that under the common law of agency, the fiduciary relationship and the agents duty thereunder, was clearly establish between the buyer and the agent through implication.

So, it is accepted by the courts that if you act like someone's agent and talk or behave like their agent, you are their agent in the eyes of the court, UNLESS the relationship is clearly documented to the contrary.

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 .

Any California agents know the answer to my question?

My friend you should review your CAR forms and speak with your broker. The answer to your question regarding agency is this, as a licensee you must have any person you have a meaningful conversation with regarding real estate sign an agency document. Use a reasonable man standard to define meaningful. If you're at a Laker game an the guy drinking a brew next to you talks about buying the REO three doors down from him you don't need to have him complete an agency doc. If he shows up at your office or invites to his home to walk down the street you should have him sign the form.

With regard to submitting an offer, your client should have signed an agency disclosure doc, that document is sent along with the purchase offer signed by your client. If you were presenting the offer in person you'd prepare an agency document for the seller to sign as well.

This is NOT optional, do it if you remember stuff. This is all codified in the California Civil Code 2079.13 to 2079.24. Which means non-compliance gets your licensed yanked and you successfully sued by your former client or the seller or both.

So, what you are saying is, that the laws in California as to buyer Agency are the same as in Colorado (where I am). Without a SIGNED agency agreement, there is NO agency?

The women suing the agent in California doesn't have a leg to stand on because there is no BA contract?

http://www.nytimes.com/2008/01/22/business/22agent.html?pagewanted=1&hp

p.s. I'm not into brews and laker games, a link to the CA agency laws will be appreciated.

Never mind, looks like you are not required to have a separate buyer agency contract, just some type of disclosure form stating who you work for. Here is our BA contract, making it quite clear who pays us and who we work for, including our fiduciary obligations and responsibilities.

http://www.dora.state.co.us/Real-estate/contracts/BC60040705CLN.pdf

Pike the original question came from a Cali licensee. That licensee has specific requirements to keep his license and avoid prosecution of claims against himself and his brokerage.

If I read your comments correctly I really wouldnt know how to respond. In real estate what isn't in writing won't bear probative scrutiny at trial. You have to figure that memories will fade or become selective so you memorialize the agreement for the benefit of all parties.

Reading this (link below), does NOT require a written Buyer Agency Contract to be able to represent a buyer, which in my location is illegal. Your requirement, if I read it correctly, only requires a disclosure form.

http://caselaw.lp.findlaw.com/cacodes/civ/2079-2079.24.html

In California a licensee is not required to have a written agreement to represent a buyer. Best practices dictate if you want to be paid for your time during this period where gasoline prices are approaching $4 a gallon you'd have the person sign a buyer broker agreement mandating that he pay you for your services. Otherwise what's to stop that person from riding around in your range rover for a month then buying from their cousin who has a license but not much else?

Hope this adds just a bit of clarity to how our laws are different from what you see every day in Colorado Pike.

"Hope this adds just a bit of clarity to how our laws are different from what you see every day in Colorado Pike.


Thanks, it does.
Looks to me, like you guys operate a little loosy goosy with buyer agency. So, the lady with the lawsuit, probably does have a leg to stand on and might win, given the agent had a fiduciary duty to her, although it was not in writing.

Pike, I don't know that the buyer broker agreement promulgated by the California Association of REALTORS has been successfully challenged at trial. I've had more than a few conversations with CAR attorneys and while most aren't trial litigators they would have mentioned the fact that the buyer broker contract being used has had successful challenges.

I'm also unfamiliar with the ongoing litigation you're referring to. Is it California litigation?