58-30,107. Minimum requirements of buyer's or tenant's agent.
- A buyer's or a tenant's agent shall be a statutory agent with
the duty and obligation to:
- Perform the terms of the written agreement made with the client;
- promote the interests of the client with the utmost good faith,
loyalty and fidelity, including:
- Presenting in a timely manner all offers to and from the
client when such offer is received prior to the closing of the
sale unless the buyer instructs the broker in the agency agreement
not to submit offers after the client enters into a purchase contract;
- disclosing to the client all adverse material facts actually
known by the licensee; and
- advising the client to obtain expert advice as to material
matters about which the licensee knows but the specifics of which
are beyond the expertise of the licensee;
- account in a timely manner for all money and property received;
- comply with all requirements of this act and rules and regulations
adopted hereunder; and
- comply with any applicable federal, state and local laws, rules
and regulations and ordinances, including fair housing and civil rights
statutes or rules and regulations.
- If pursuant to subsection (a)(2)(C), the licensee advised the
client to obtain expert advice as to material matters about which
the licensee knows but the specifics of which are beyond the expertise
of the licensee, no cause of action for any person shall arise against
the licensee pertaining to such material matters.
- A buyer's or tenant's agent shall not disclose any confidential
information about the client unless disclosure is required by statute
or rule and regulation or failure to disclose the information would
constitute fraudulent misrepresentation. No cause of action for any
person shall arise against a licensee acting as a buyer's or tenant's
agent for making any required or permitted disclosure.
- A buyer's or tenant's agent owes no duty or obligation to a
customer, except that the licensee shall disclose to any customer
all adverse material facts actually known by the licensee, including
but not limited to material facts concerning the client's financial
ability to perform the terms of the transaction.
- A buyer's or tenant's agent owes no duty to conduct an independent
investigation of the client's financial condition for the benefit
of the customer and owes no duty to independently verify the accuracy
or completeness of statements made by the client or any qualified
- Except as provided in subsection (d)(4), a buyer's or tenant's
agent is not required to disclose to a client or customer information
relating to the physical condition of the property if a written report
regarding the physical condition of the property has been prepared
by a qualified third party and provided to the client or customer.
- A buyer's or tenant's agent shall disclose to the client or
customer any facts actually known by the licensee that were omitted
from or contradict any information included in a written report described
in subsection (d)(3).
- In performing an investigation or inspection and in making
a disclosure in connection with a real estate transaction, a licensee
shall exercise the degree of care expected to be exercised by a reasonably
prudent person who has the knowledge, skills and training required
for licensure as a broker or salesperson.
- A buyer's or tenant's agent may provide assistance to the seller
or landlord by performing ministerial acts. Performing ministerial
acts for the seller or landlord shall not be construed as violating
the brokerage firm's agency with the buyer or tenant and shall not
be construed as forming an agency with the seller or landlord.
- A buyer's or tenant's agent may show properties in which the
client is interested to other prospective buyers or tenants without
breaching any duty or obligation to the client. This subsection is
intended to allow a buyer's or tenant's agent to show competing buyers
or tenants the same property and to assist competing buyers or tenants
in attempting to purchase or lease a particular property.
- A buyer or tenant may agree in writing with a buyer's or tenant's
agent that the agent may receive compensation from a seller's or landlord's
agent or from a transaction broker.
- A buyer's or tenant's agent shall not be liable for punitive
or exemplary damages for the licensee's failure to perform any of
the duties set forth in this section, unless such failure is shown
by clear and convincing evidence that the licensee acted toward the
plaintiff with willful conduct, wanton conduct, fraud or malice.
(History: L. 1995, ch. 252, § 7; Revived, L. 1997, ch. 65, §
34; L. 1997, ch. 65, § 35; Oct. 1.)