Disclosure regarding being a licensed real estate salesperson

[promortplanner]

I recently posted about working with people who are in preforeclosure and wanted to follow up with a few comments about disclosure. You must always remember to disclose the fact that you are a licensed real estate salesperson and if working with financially distressed people - make sure that no agency relationship has been formed between you and the person. If not properly addressed and disclosed, you could put your license and career on the line without thinking anything wrong. I would love to hear comments about peoples experiences regarding agency disclosure and what kind of forms they use to cover themselves if going out into the field and engaging in preforeclosure investments.

[ckoback]

I cant speak for all states but in maryland you MUST disclose this. I have also been informed when a client is in distress and loosing the home there is a 10 day right to cancel after closing.

[OregonLO]

you MUST disclose this in Oregon as well. I think you are going to have to in most states. Since I'm a Loan Originator I'm wondering if I have to disclose anything. My partner and I are about to contact some people who are in foreclosure and see if we can't buy their home from them.

[reloindex120]

I am very much agreed with ckoback..he is very right regarding your prob
lem.

[Roger_Silvester]

Even though most realtors work for the seller, as agent or sub-agent, many purchasers feel that the realtor is "their agent". The purchaser may inadvertently disclose confidential information which that agent is then legally obligated to disclose to the seller.

The Michigan Occupational Code now requires all licensed real estate agents to disclose their legal allegiance. The agent must make this disclosure in writing before the potential client shares any "confidential information" with that agent2.

The purpose of the law is to put purchasers and sellers on notice that the agent may not be working for them, and that the agent is obligated to disclose potentially detrimental information about them to the other side, such as how much money the purchaser is going to pay for the property, or the minimum purchase price that the seller is willing to accept.

The statute contains a suggested form. The form requires real estate agents to disclose for whom they are working, and the duties which the agency relationship creates. There are four possibilities: Seller's Agent (agent works for the seller); Buyer's Agent (agent works for the purchaser); Dual Agent (agent works for both sides); and Transaction Coordinator (agent does not work for either side). The disclosure form must be signed by both the realtor and the potential buyer and/or seller.