Search our Listings Service Here's how it works Fair Housing Act Contact Us

The Legal Information and Disclosures

Agency Information and Disclosure Forms

Kentucky Law requires specific information to be made available and disclosed to parties entering into an agreement to either sell or purchase real estate using the services of a Broker or Agent who is licensed in the Commonwealth of Kentucky.

The following are approved definitions and explanations of specific types of Agency designations. At the time of an offer being presented on property being sold by you, or at the time that you are making an offer to purchase a property, you will be provided with forms to sign indicating your understanding of the type of relationship relative to your representative Ehomesusa Agent. These “Agency Disclosures” are available below should you desire to preview them prior to your Ehomesusa Agent presenting them for your signature. Prior to you signing, your Ehomesusa Agent will gladly answer any question that you have regarding the disclosures.

 “Agency Disclosure Statement - Buyer” or “Agency Disclosure Statement - Seller”

What follows is the approved agency information and disclosure form:

‘Parties to real estate negotiations and agreements are either “clients” or “customers” of real estate licensees.’

“Clients” are persons represented by agents. Agents owe clients certain duties. These duties include negotiation for the client’s best interest, informing the client of all known material facts, and to maintain confidential information. Consumers attain client status typically by written agreement. The most common such agreement is a listing agreement in which a consumer signs a contract with a real estate company to sell his or her house.

“Customers” are persons who use the services of real estate licensees but are not clients of the licensee. Real estate licensees owe lesser duties to a customer than to a client. Licensees are required to deal honestly and fairly with customers.

Paying a fee to a real estate broker does not make the person a client of the broker.

SELLER’S AGENT

If one signs a contract for a real estate company to sell real estate, the person is the client of the listing agent’s company unless designated agency is established. The listing broker and all his salespeople represent and owe a primary allegiance to the Seller unless designated agency or dual agency (see below) is established. Duties of loyalty and faithfulness are owed to the Seller only unless designated agency or dual agency (see below) is established. Seller’s agents do not negotiate on the behalf of buyers unless they are also acting as dual agents (see below).

Some Seller’s agents will solicit the cooperation of other brokers to represent their client, the Seller, in the marketing and sale of the property. Even though these licensees are not agents of the listing company, they may become a subagent of the Seller’s agent and owe the same fiduciary duties of loyalty and faithfulness to their client, the Seller, as a Seller’s agent. In this situation the Buyer would have a customer status.

BUYER’S AGENT

A Broker can, at the Buyer’s request, agree to act as an agent for the Buyer only. In these situations, the agent is not the Seller’s agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller.

If you choose to be represented by your real estate agent in this prospective real estate transaction and acknowledge that the agent you are working with is your agent and not an agent of the Seller, then you will have a client status.

DUAL-LIMITED AGENT
(AGENT REPRESENTING BOTH BUYER AND SELLER)

A real estate agent can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual-limited agency situation the agent has limited fiduciary duties of utmost care, integrity, honesty and loyalty in dealings with the Seller and the Buyer. The agent will also have the duty to disclose all facts known to the agent materially affecting the property that are not known within the diligent attention and observation of the parties. The duties of honest and fair dealing in good faith shall be due both parties.

An example in representing both Seller and Buyer, the agent shall not, without express permission of Seller, disclose to Buyer that the Seller is willing to sell the property at a price that is less than the listing price, and likewise, the agent shall not, without the express permission of the Buyer, disclose to the Seller that Buyer will pay a price that is greater than the price offered.

DESIGNATED AGENCY

If both buyer and seller consent, the broker responsible for a real estate office may designate agents to represent the buyer and the seller to the exclusion of all other agents associated with his office. The seller will become the client of the agent designated to represent him and the buyer will become the client of the agent designated to represent him. Designated agency allows two licensees in the same firm to represent different parties to a real estate transaction. The principal broker serves as a dual agent in a designated agency transaction. Consent of the client is always needed to create designated agency.

TRANSACTION BROKER

A transaction broker, acting through one or more sales associates, assists the parties to a potential real estate transaction as a real estate broker in communication, interposition and negotiation, to reach agreement between or among them, without acting as agent for any party.

 A transaction broker will treat both buyer and seller as customers. An example of a transaction broker is when you, the Buyer, are a customer of the real estate licensee assisting you. The licensee assisting you has no agency relationship with the Seller of the property in which you are interested. The licensee would be a transaction broker and not act as an agent for either party.