Real Estate Agency

REPRESENTATION OF BOTH BUYER AND SELLER
INITIAL AGENCY DISCLOSURE PAMPHLET
ORS 696.815 (1) authorizes a real estate licensee to represent both the seller and the
buyer in a real estate transaction under a disclosed limited agency agreement, provided
there is full disclosure of the relationship under the agreement. Oregon Administrative
Rules (OARs) adopted by the Agency provide the form and content of the disclosures and
the related pamphlet. OAR 863-015-0215 is set forth below for the convenience of
licensees. The material after the broken line can be copied and used as the required
Initial Agency Disclosure Pamphlet.
863-015-0215
Initial Agency Disclosure Pamphlet
(1) An agent shall provide a copy of the Initial Agency Disclosure Pamphlet provided for
in section (4) of this rule at first contact with each represented party to a real property
transaction, including but not limited to contacts in-person, by telephone, over the
Internet or World Wide Web, or by electronic mail, electronic bulletin board or a similar
electronic method.
(2) An agent need not provide a copy of the Initial Agency Disclosure Pamphlet to a
party who has, or may be reasonably assumed to have, already received a copy of the
pamphlet from another agent.
(3) “First contact with a represented party” means contact with a person who is
represented by a real estate licensee or can reasonably be assumed from the
circumstances to be represented or seeking representation.
(4) The Initial Agency Disclosure Pamphlet shall be printed in substantially the following
form:
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INITIAL AGENCY DISCLOSURE PAMPHLET (OAR 863-015-215(4))
This pamphlet describes agency relationships and the duties and responsibilities of real
estate licensees in Oregon. This pamphlet is informational only and neither the pamphlet
nor its delivery to you may be construed to be evidence of intent to create an agency
relationship.
Real Estate Agency Relationships
An “agency” relationship is a voluntary legal relationship in which a real estate licensee
(the “agent”) agrees to act on behalf of a buyer or a seller (the “client”) in a real estate transaction. Oregon law provides for three types of agency relationships between real
estate agents and their clients:
Seller’s Agent — Represents the seller only;
Buyer’s Agent — Represents the buyer only;
Disclosed Limited Agent — Represents both the buyer and seller, or multiple buyers who
want to purchase the same property. This can be done only with the written permission of
both clients.
The actual agency relationships between the seller, buyer and their agents in a real
estate transaction must be acknowledged at the time an offer to purchase is made. Please
read this pamphlet carefully before entering into an agency relationship with a real
estate agent.
Duties and Responsibilities of an Agent Who Represents Only the Seller or Only the
Buyer
Under a written listing agreement to sell property, an agent represents only the seller
unless the seller agrees in writing to allow the agent to also represent the buyer. An agent
who agrees to represent a buyer acts only as the buyer’s agent unless the buyer agrees in
writing to allow the agent to also represent the seller. An agent who represents only the
seller or only the buyer owes the following affirmative duties to their client, other parties
and their agents involved in a real estate transaction:
1. To exercise reasonable care and diligence;
2. To deal honestly and in good faith;
3. To present all written offers, notices and other communications in a timely manner
whether or not the seller’s property is subject to a contract for sale or the buyer is already
a party to a contract to purchase;
4. To disclose material facts known by the agent and not apparent or readily ascertainable
to a party;
5. To account in a timely manner for money and property received from or on behalf of
the client;
6. To be loyal to their client by not taking action that is adverse or detrimental to the
client’s interest in a transaction;
7. To disclose in a timely manner to the client any conflict of interest, existing or
contemplated; 8. To advise the client to seek expert advice on matters related to the transactions that are
beyond the agent’s expertise;
9. To maintain confidential information from or about the client except under subpoena
or court order, even after termination of the agency relationship; and
10. When representing a seller, to make a continuous, good faith effort to find a buyer for
the property, except that a seller’s agent is not required to seek additional offers to
purchase the property while the property is subject to a contract for sale. When
representing a buyer, to make a continuous, good faith effort to find property for the
buyer, except that a buyer’s agent is not required to seek additional properties for the
buyer while the buyer is subject to a contract for purchase or to show properties for which
there is no written agreement to pay compensation to the buyer’s agent.
None of these affirmative duties of an agent may be waived, except #10, which can only
be waived by written agreement between client and agent.
Under Oregon law, a seller’s agent may show properties owned by another seller to a
prospective buyer and may list competing properties for sale without breaching any
affirmative duty to the seller. Similarly, a buyer’s agent may show properties in which the
buyer is interested to other prospective buyers without breaching any affirmative duty to
the buyer.
Unless agreed to in writing, an agent has no duty to investigate matters that are outside
the scope of the agent’s expertise.
Duties and Responsibilities of an Agent Who Represents More than One Client in a
Transaction
One agent may represent both the seller and the buyer in the same transaction, or multiple
buyers who want to purchase the same property only under a written “Disclosed Limited
Agency” agreement, signed by the seller, buyer(s) and their agent.
When different agents associated with the same real estate firm establish agency
relationships with different parties to the same transaction, only the principal broker (the
broker who supervises the other agents) will act as a Disclosed Limited Agent for both
the buyer and seller. The other agents continue to represent only the party with whom the
agent already has an established agency relationship unless all parties agree otherwise in
writing. The supervising principal broker and the agents representing either the seller or
the buyer have the following duties to their clients:
1. To disclose a conflict of interest in writing to all parties;
2. To take no action that is adverse or detrimental to either party’s interest in the
transaction; and 3. To obey the lawful instruction of both parties.
An agent acting under a Disclosed Limited Agency agreement has the same duties to the
client as when representing only a seller or only a buyer, except that the agent may not,
without written permission, disclose any of the following:
1. That the seller will accept a lower price or less favorable terms than the listing price or
terms;
2. That the buyer will pay a greater price or more favorable terms than the offering price
or terms; or
3. In transactions involving one-to-four residential units only, information regarding the
real property transaction including, but not limited to, price, terms, financial
qualifications or motivation to buy or sell.
No matter whom they represent, an agent must disclose information the agent knows or
should know that failure to disclose would constitute fraudulent misrepresentation.
Unless agreed to in writing, an agent acting under a Disclosed Limited Agency agreement
has no duty to investigate matters that are outside the scope of the agent’s expertise.
You are encouraged to discuss the above information with the agent delivering this
pamphlet to you. If you intend for that agent, or any other Oregon real estate agent, to
represent you as a Seller’s Agent, Buyer’s Agent, or Disclosed Limited Agent, you should
have a specific discussion with him/her about the nature and scope of the agency
relationship. Whether you are a buyer or seller, you cannot make a licensee your agent
without their knowledge and consent, and an agent cannot make you their client without
your knowledge and consent

https://oregonrealtors.org/sites/default/files/Initial_Agency_Disclosure_Pamphlet.pdf