As a Seller’s or buyer’s agent , Craig will be your real estate professional who guides You ( the buyer/Seller ) through the process of purchasing/Selling a home. As a representative of you ( Seller/purchaser) in a real estate transaction, Craig (as Seller’s/buyer’s agent) has a legal obligation to protect the interests of you (the buyer /Seller) and work to ensure you’re getting the best deal possible.
Whether you’re the buyer, or seller, getting your business relationship in writing with a Real Estate Agreement is a smart move. It describes how your agent will find or market, advertise, and buy or sell the property for the highest possible advantage for you, and the terms of our fee, which is generally a percentage of the real estate transaction. With this agreement, the agent also has the right to buy/sell the property on your behalf and be reimbursed for their services. Since the real estate agent will generally be an independent contractor, this document helps you avoid any confusion that the Agent is an employee, which could help you at tax time. Create a Real Estate Agent Agreement today to avoid misunderstandings, outline the terms of your contract, and keep your client happy.
CALIFORNIA ASSOCIATION OF REALTORS ® DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
(C.A.R. Form AD, Revised 12/18)
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 1 OF 2)
AD REVISED 12/18 (PAGE 1 OF 2) Print Date
© 1991-2018, California Association of REALTORS®, Inc.
q (If checked) This form is being provided in connection with a transaction for a leasehold interest exceeding one year as per Civil Code
section 2079.13(j), (k), and (l).
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what
type of agency relationship or representation you wish to have with the agent in the transaction.
SELLER’S AGENT
A Seller’s agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller’s agent or a subagent of that agent
has the following affirmative obligations:
To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent’s duties.
(b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known
to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential
information obtained from the other party that does not involve the affirmative duties set forth above.
BUYER’S AGENT
A Buyer’s agent can, with a Buyer’s consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller’s
agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent
acting only for a Buyer has the following affirmative obligations:
To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent’s duties.
(b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known
to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential
information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent
of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.
(b) Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other
party confidential information, including, but not limited to, facts relating to either the Buyer’s or Seller’s financial position, motiviations,
bargaining position, or other personal information that may impact price, including the Seller’s willingness to accept a price less than the
listing price or the Buyer’s willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that
agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure
it accurately reflects your understanding of your agent’s role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her
own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction.
A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property
which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax
consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents
assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this
disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate
agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the
Civil Code set forth on page 2. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE
PORTIONS OF THE CIVIL CODE PRINTED ON THE BACK (OR A SEPA
