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Disclosure Of Brokerage
Relationships In Contracts

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Reference K.S.A. 58-30,110(c)

One commonly used method of disclosure provides for checking appropriate blanks as illustrated below:

Listing Licensee,  (licensee's name)  of   (brokerage firm)  , is functioning as  (mark appropriate response):

___  seller's agent

___  designated seller's agent (supervising broker acts as transaction broker)

___ transaction broker

Selling Licensee,   (licensee's name)   of   (brokerage firm)  , is functioning as  (mark appropriate response):

___  buyer's agent

___  designated buyer's agent (supervising broker acts as transaction broker)

___  seller's agent

___  designated seller's agent (supervising broker acts as transaction broker)

___  transaction broker


Note that the supervising broker of a designated agent always acts as a transaction broker in any transaction involving the designated agent. When there is a designated agent for the seller and when the buyer is represented by a designated agent from a different firm, the supervising broker of both firms acts as a transaction broker.


EXAMPLES OF DISCLOSURE

*Please note that the following examples include two possibilities for the selling licensee:

  1. the selling licensee is in the same firm as the listing licensee
  2. the selling licensee is in a different firm

FOR LISTING LICENSEE

seller's agent     The licensee's firm has a written agency agreement with the seller. A designated agent for the seller was not appointed in the agency agreement.

designated seller's agent (supervising broker acts as transaction broker)     The licensee was named as the designated agent for the seller in the written agency agreement with the seller.

transaction broker     This would be a correct choice if:

  1. the seller's property is listed by the firm as a transaction broker; or
  2. the buyer and seller signed a Transaction Broker Addendum, which amended the firm's agency agreement with the buyer and the firm's agency agreement with the seller.

Note that a broker may be engaged as a transaction broker by oral or written agreement with the seller, which is reflected in choice (1) above.

A broker is considered to be a transaction broker unless there is an agency agreement with one of the parties or the broker is acting as subagent of the seller.

If the broker has a written agency agreement with the buyer, the selling licensee would be acting as a buyer's agent or a designated buyer's agent and would not have a transaction broker relationship with the seller.

This would be the case when a buyer's agent or a designated buyer's agent shows a "For Sale by Owner" property to the buyer.  There is no "listing licensee" to be disclosed.   It is recommended that preprinted language in the contract be stricken and the appropriate disclosure inserted, for example:

  (licensee's name)    of    (brokerage firm)   is acting as agent for the buyer (or as a designated buyer's agent) with the duty to represent the buyer's interest. The seller is not represented by a real estate licensee.

An alternative would be to simply insert  "not applicable"   or  "the seller is not represented"   in the  Listing Licensee   block.


FOR SELLING LICENSEE

If the Selling Licensee is in the Same Firm
as the Listing Licensee

buyer's agent     The licensee's firm has a written agency agreement with the buyer. A designated agent for the buyer was not appointed in the agency agreement. This would be a correct choice if:

  1. the seller is not represented; or
  2. the listing licensee is a designated seller's agent. All licensees represent the buyer except the designated seller's agent who represents the seller and the supervising broker who acts as a transaction broker.

designated buyer's agent (supervising broker acts as transaction broker)    The licensee was named as the designated agent for the buyer in the written agency agreement with the buyer. This would be a correct choice if:

  1. the listing licensee is a designated seller's agent (and not the same person as the designated buyer's agent); or
  2. the firm has a written agency agreement with the seller. A designated agent for the seller was not appointed in the agency agreement. The supervising broker acts as a transaction broker. All other affiliated licensees, except the designated buyer's agent, represent the seller.

seller's agent     The licensee's firm has a written agency agreement with the seller. A designated agent for the seller was not appointed in the agency agreement. All licensees, including the supervising broker, represent the seller. The buyer is not represented.

designated seller's agent (supervising broker acts as transaction broker)     The listing and selling licensee is the same person. The licensee was named as the designated agent for the seller in the written agency agreement with the seller. The buyer is not represented.

transaction broker    This would be a correct choice if:

  1. the seller's property is listed by the firm as a transaction broker and the buyer is not represented; or
  2. the seller's property is listed by the firm as a transaction broker and the broker has a transaction brokerage agreement with the buyer; or
  3. the listing licensee is a designated agent for the seller and the buyer is not represented; or
  4. the buyer and seller signed a Transaction Broker Addendum, which amended the firm's agency agreement with the buyer and the firm's agency agreement with the seller.

FOR SELLING LICENSEE

If the Selling Licensee is in a Different Firm
(a cooperative sale)

buyer's agent    The cooperating firm has a written agency agreement with the buyer. A designated agent for the buyer was not appointed in the agency agreement.

designated buyer's agent (supervising broker acts as transaction broker)    The licensee was named as the designated agent for the buyer in the cooperating firm's written agency agreement with the buyer. The supervising broker of the cooperating firm acts as a transaction broker.

seller's agent    The cooperating firm accepted an offer of subagency and represents the seller. The buyer is not represented.

transaction broker    The licensee is working with the buyer as a transaction broker. The buyer is not represented.


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