A Broker Must Give A Copy Of The Written Listing Agreement To The Seller
The legal definition of the „cause of supply“ is somewhat on the arcane side. An abstract definition, often used by the courts, defines the standard as: „[t]he near thing; the cause of a series of events that, without breaking your continuity, result in the fulfillment of the main object. The courts apply this abstract basis of the supply of the case to real estate commissions by saying that the cause of supply is „a cause that leads to a series of events without rupture in their continuity in their realization of the main objective of the real estate agent`s employment, who is willing to buy a buyer ready, ready and able to buy real estate on the terms of the owner.“ The extent of a sales relationship with a seller is quite simple: marketing the property to find a buyer willing to buy. Not only was the scope of the distribution relationship quite simple, but it was also defined in a written rating agreement. As a result, historically, there has been little reason to be concerned about the extent of the Agency`s relationship. All that changes. Compensation issues are resolved by contract. Although not generally understood to be entitled to a commission, it is not enough to have a real estate license, to be an agent of one of the parties or even to be the client of the sale. Commissions are only payable if there is an enforceable agreement for the payment of a commission. List agreements are used for this purpose on the list site.
Normally, the exchange broker`s unilateral offer of compensation in the MLS serves the same purpose on the sales side. ORS 696.815 defines the legal obligations of a licensee representing both the buyer and the seller in a single transaction. By law, a licensee may represent both the buyer and seller in a real estate transaction „as part of a restricted agency agreement with full disclosure of the relationship under the agreement.“ The statue explains that dual representation requires a specific agreement (the agreement disclosed with restricted agencies) and that the agreement must include full disclosure of relations between two agencies. These agreements are the subject of wide debate within the „Restricted Agency Unveiled“ division on this issue. Remember to define the extent of an agency relationship or practice industry standards, such as a housekeeper telling an owner that she does not make windows. This agreement on windows limits the scope of the housekeeper`s work. If the housekeeper limits the scope of her work, the dirty windows in the house are not the fault of the housekeeper, even if a housekeeper had a legal duty to keep things clean and shiny. The „clean and shiny“ legal obligation would simply not be attached to the windows. The issue of commission in the handling of an FSBO or ads that do not contain compensation is a frequent source of confusion. Historically, agents have dealt with the issuance of commissions when dealing with an unrepresented seller by having the seller sign a list of a party. This approach creates an alternating agency situation in which the broker represents both the buyer they have put up for sale and the seller.
As in any dual agency situation, the risk associated with the transaction increases. Good faith is usually a difficult concept, not just real estate licensees.