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Disclosure of Potential
for
Designated Agency

KREC

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An agency agreement with a seller
must include any potential for an affiliated licensee to act as a designated agent for the buyer and for the designated agent's supervising broker to act as a transaction broker.

Why is this necessary?

If a designated agent for the seller is not appointed, the seller must be informed of any potential that a buyer will be represented by a designated buyer's agent from the same firm.

Why is that important?

Because all licensees in the firm would not be representing the seller.

  • The designated buyer's agent would represent the buyer.
  • The supervising broker would act as a transaction broker.
  • All other affiliated licensees would represent the seller.

An agency agreement with a buyer
must include any potential for an affiliated licensee to act as a designated agent for the seller and for the designated agent's supervising broker to act as a transaction broker.

Why is this necessary?

If a designated agent for the buyer is not appointed, the buyer must be informed of any potential that a seller will be represented by a designated seller's agent from the same firm.

Why is that important?

Because all licensees in the firm would not be representing the buyer.

  • The designated seller's agent would represent the seller.
  • The supervising broker would act as a transaction broker.
  • All other affiliated licensees would represent the buyer.

Branch Brokers in Designated Agency

If a branch broker acts as a transaction broker in a designated agency situation (or another affiliated licensee is appointed to act as a transaction broker) pursuant to K.S.A. 58-30,109(b)(4), such potential also needs to be addressed in the agency agreements.

Language for Agency Agreements

Brokers who practice designated agency may want to review the sample Exclusive Right to Sell Contract and the sample Exclusive Buyer Agency Contract approved by legal counsel of the Kansas Real Estate Commission on November 5, 1997.

Paragraph 7 of the sample contract with a seller is entitled "SELLER'S Acknowledgment of Possible DESIGNATED AGENT RELATIONSHIP."

Paragraph 7 of the sample contract with a buyer is entitled "BUYER'S Acknowledgment of Possible DESIGNATED AGENT RELATIONSHIP."


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