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Disclosure Regarding Real Estate Relationships

Here’s the truth about the Disclosure Regarding Real Estate Relationships: the agent does not need to circle his or her relationship on the document.

But… nevertheless, agents make those circles all the time. If an agent is a buyer’s agent, he or she sometimes feels the need to circle ‘buyer’s agent’. If he or she is a seller’s agent, the agent may feel compelled to circle ‘seller’s agent’. However, that is not what the document is for.

According to the text of the Disclosure Regarding Real Estate Relationships, each agent that has a relationship with a buyer or seller is required to submit the form so that the client can consider the type of relationship that the he or she has with the agent. That’s it—said and done.

If you want to confirm the relationship that you have with your client, this can be done on an Agency Confirmation form. The first page of the Residential Purchase Agreement also has a blank line where the agent will right in his or her brokerage name as the representative of the buyer, the seller, or both.

This brings me to the last point. Remember that it is not the agent who represents the client, but the brokerage. The agent is an agent for the brokerage. So, if you make a boo boo, it may not be only you who goes down, but you may sink the whole ship. It is important for agents to align themselves with brokers who check and approve all file documents for every transaction. In this way, you can prevent a whole world of trouble down the road.

At Transaction 911, our San Diego transaction coordinators are our first set of eyes. They make sure that deadlines are met, paperwork has all signatures and initials, and that items are turned in on time. If you need help preparing a fully compliant transaction file, feel free to contact the San Diego transaction coordinators at Transaction 911.