Dual Agency Rule change effective May 1 2007
The New Hampshire Real Estate Commission
recently approved rule changes
that go into effect on May 1 2007. These changes now bring the Rules (REA) in line with the Law and as some of you know changes to the law (RSA) 331-A:25-d Disclosed Dual Agent;Duties were approved in 2005 and since that time the "Rules" really didn't make any sense. Many agents seem to be a little confused
by the difference between RSA's (Laws) and the REA's (Rules)...what is what...and which one do you listen to? Now that won't be a problem any more but to clarify I have always considered the Law (RSA's)to be like your car's owners manual
...full of advice on what Must be done
and the Rules (REA's) to be like the operators manual.
..telling you How to do what must be done
. Make sense?
Our Rules will now coincide with our Law! The biggest change is to REA 701.01 Agency and Non Agency Disclosure and Rea 404.4 Brokerage Contracts
(a) A licensee shall provide a written agency relationship disclosure to the consumer at the time of first business meeting.
(b) A licensee showing a property listed with another agency shall disclose their agency or non-agency relationship verbally or in writing to the other party’s agent prior to showing the property and in the writing at time of the offer.
(c) Licensees shall use the agency/non-agency disclosure form adopted by the commission (as of this writing they are still developing the form that we all will have to use)
(f) A licensee intending to act in the capacity of a dual agent shall:
(1) At the time of first meeting with a consumer to discuss a specific property, provide a written agency relationship disclosure pursuant to Rea 701 .01(a);
(2) On the listing contract and buyer agency/tenant representation contract, give the client the option to accept or deny a dual agency statement of consent to showings, pursuant to Rea 404.04;
(3) have the informed consent to dual agency agreement signed and reviewed by the buyer/tenant and seller/landlord at the time which in the dual agency occurs but no later than the preparation of a written offer for sale or lease pursuant to Rea 404.04
Changes to Rea 404.4 Brokerage Contracts as of May 1 2007 will now require that listing agreement and buyer agency agreements have consent for dual agency showings within the agreement by separate dated signatures.
Caution...You must be sure to gain Informed written consent at time of listing for potential Dual Agency showings and then be sure to get the actual consent form signed prior to drafting an offer for sale or lease of real estate.
Best Practice...Make sure you have (1.) signed consent for showings on the listing agreement and then (2.) Contact your seller client and inform them that a dual agency showing is taking place and try to get written consent...if unable to get written consent...make sure you get it before you present or draft an offer and make sure your buyer client understands what dual agency really means.
These changes are more in line with how we actually do business in NH but if not handled correctly the agent has more rope to hang themselves with in my opinion.
Need a refresher on what dual agency in New Hampshire is check out my blog post called Dual Agency Life in the Fast Lane
The New Hampshire Association of REALTORS will be adding new forms to our True Forms (forms on line) once we get final approval from the Board of Directors that will reflect these changes.
A listing of the forms pending approval are;
The Revised Forms will include:
CONDITIONAL RELEASE FROM EXCLUSIVE LISTING AGREEMENT
CONDITIONAL RELEASE FROM EXCLUSIVE BUYER AGENCY AGREEMENT
DUAL AGENCY INFORMED CONSENT AGREEMENT
EXCLUSIVE AGENCY AGREEMENT
EXCLUSIVE BUYER AGENCY AGREEMENT
EXCLUSIVE LISTING AGREEMENT
PROPERTY DISCLOSURE – LAND
PROPERTY DISCLOSURE – RESIDENTIAL ONLY
PURCHASE AND SALES AGREEMENT AND DEPOSIT RECEIPT
Brand Spanking New Forms will be:
BUYER AGENCY DISCLOSURE
SELLERS SUITABLE HOUSING ADDENDUM TO PURCHASE AND SALES AGREEMENT AND DEPOSIT RECEIPT
I'm sure we'll all have a bit of a learning curve to go through but these forms will make it easier for all of us.
Jay and Monika McGillicuddy
Prudential Verani Realty
Jay and Monika McGillicuddy, covering southern NH and the Seacoast area. If you’re thinking of selling or buying a southern NH or Seacoast area home give us a call…we’d love to help make your home ownership dreams come true.
E-mail Jay and Monika or call or text at 603-548-7728
Jay and Monika McGillicuddy, NH REALTORS
Prudential Verani Realty
603-944-9172 direct line