Mandatory disclosure required under section 5-17 of the Real Estate Rules, effective June 15, 2018.
The Superintendent has provided a narrow exemption to the rule prohibiting dual agency, for rare situations where:
- the trade occurs in remote locations
- that are under-served by licensees and
- where an alternative to dual agency would be impracticable.
All three conditions must be met in order to qualify under this exemption.
“Impracticable” means “not capable of being done.” It does not mean “inconvenient.”
Before practicing dual agency under this exemption, a licensee must make a disclosure to both parties to the transaction called the Disclosure of Risks Associated With Dual Agency. The disclosure informs the consumers of the duties and responsibilities of the licensee to the clients, and the risks associated with a dual agency relationship.
The disclosure must also include a signed statement by the brokerage explaining why the exemption applies.
When a licensed real estate professional represents two parties with competing interests in a real estate transaction, it is known as “dual agency.”
Published on May 04, 2018