CONSUMER INFORMATION STATEMENT ON NEW JERSEY REAL ESTATE RELATIONSHIPS
In New Jersey Licensees are required to disclose how they intend to work with buyers and sellers in a real estate transaction. (In rental transactions, he terms “buyers” and “sellers” should be read as “tenants” and “landlords:, respectively.)
1.AS 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.
- AS A BUYER’S AGENT, I AS LICENSEE, REPRESENT THE UBYER AND ALL MATERIAL INFORMATION SUPPLED TO EM BY THE SELLER WILL BE TOLD TO THE BUYER.
3.AS A DISCLOSED DUAL AGENT, I AS LICENSEE, REPRESENT BOTH PARTIES, HOWEVER, I MAY NOT WITHOUT EXPRESS PERMISSION, DISCLOSE THAT THE SELLER WILL ACCEPT A PROCE LESS THAT THE LISTING PRICE OR THAT THE BUYER WILL PAY A PRICE GREATER THATN 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; (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.
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, and confidentiality and full disclosure. Seller’s agents often work with buyers, but do not represent the buyers. However, in workding with buyers as 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 and all persons licensed with such firms are called “sub-agents.” Sellers who do not desire to have their property marketed through sub-agents should so inform the seller’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, and 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 at 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 party. They must also explain what effect their working as a disclosed dual agent will have on the fiduciary duties their firm owns 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 a seller will accept and the parties’ motivation to buy or 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.
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 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 great 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 inn arriving at a mutually acceptable agreement and in closing the transaction, but cannot advise or counsel either party on how toe gain an advantage at the expense of the other party. Owners considering working with transaction brokers are advised to saign a written agreement with that firm which clearly states what services the 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 Systems of which that firm is a member.
YOU MAY OBTAIN LEGAL ADVICE ABOUT THESE BUSINESS RELATIONSHIPS FROM YOUR OWN LAWYER.
THIS STATEMENT IS NOT A CONTRACT AND IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY.
ACKNOLEDGEMENT OF RECEIPT OF THE CONSUMER INFORMATION STATEMENT (CIS)
FOR SELLERS AND LANDLORDS.
“By signing this Consumer Information Statement, I acknowledge that I received this State from The Van Dyk Group prior to discussing my motivation to sell or lease or my desired selling or leasing price with one of its representatives.”
FOR BUYERS AND TENANTS
“By signing this Consumer Information Statement, I acknowledge that I received this Statement from The Van Dyk Group prior to discussing my motivation or financial ability to buy or lease with one of it’s representatives.”
DECLARATION OF BUSINESS RELATIONSHIP
I, Judith Seddon, as authorized representative of The Van Dyk Group intend, as of this time, to work with you as a; (Choose one)
- Seller’s agent only
- Buyer’s agent only
- Seller’s agent and disclosed dual agent if the opportunity arises
- Buyer’s agent and disclosed dual agent if the opportunity arises
- Transaction broker only
- Seller’s agent on properties on which this firm is acting as seller’s agent and transaction broker on other properties.