FAQ : What Is Agency In Idaho?

By
Managing Real Estate Broker with Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com Designated Broker DB29503

Question: What is Agency in Idaho?

 

Answer: See Idaho's Agency Disclosure Brochure for a quick overview.

 

According to Idaho Code 54-2085 an agent must provide a customer a copy of the Idaho Agency Brochure at "first substantial business contact" and must keep a signed and dated receipt that the brochure was provided.  Signing this document does not establish any type of agency relationship or commit either parties to anything at all, but it allows the customer to understand what representation options are available. 

According to Idaho Code 54-2084 a buyer or seller is not represented by a brokerage/agent unless there is written documentation signed by all parties establishing an agency relationship.  If no agency relationship is established through writing, the buyer or seller is a customer of the brokerage/agent and are owed the duties of a customer only.  A customer may become a client through a signed written agreement, in which case the brokerage/agent owe the duties of a client.

 

There are four types of agency recognized in Idaho:

1)Non-Agency

2)Agency

3)Limited Dual Agency

4)Limited Dual Agency with Assigned Agents

See the Idaho Agency Disclosure Brochure for an explanation on each type of agency

 

According to Idaho Code 54-2086 Duties to Customers are as follows (taken directly from the Idaho Code):

(a) To perform ministerial acts to assist the buyer or seller in the sale or purchase of real estate;

(b) To perform these acts with honesty, good faith, reasonable skill and care;

(c) To properly account for moneys or property placed in the care and responsibility of the brokerage;

(d) To disclose to the buyer/customer all adverse material facts actually known or which reasonably should have been known by the licensee;

(e) To disclose to the seller/customer all adverse material facts actually known or which reasonably should have been known by the licensee

 

Agency - Explained by the Idaho Real Estate Commission

 

According to Idaho Code 54-2087 Duties to Clients are as follows (taken directly from the Idaho Code):

(1) To perform the terms of the written agreement with the client;

(2) To exercise reasonable skill and care;

(3) To be available to the client to receive and timely present all written offers and counteroffers;

(4) To promote the best interests of the client in good faith, honesty and fair dealing including, but not limited to:

(a) Disclosing to the client all adverse material facts actually known or which reasonably should have been known by the licensee;

(b) Seeking a buyer to purchase the seller’s property at a price, and under terms and conditions acceptable to the seller and assisting in the negotiation therefor; or

(c) Seeking a property for purchase at a price and under terms and conditions acceptable to the buyer and assisting in the negotiation therefor;

(d) For the benefit of a client/buyer: when appropriate, advising the client to obtain professional inspections of the property or to seek appropriate tax, legal and other professional advice or counsel;

(e) For the benefit of a client/seller: upon written request by the client/seller, requesting reasonable proof of a prospective buyer’s financial ability to purchase the real property which is the subject matter of the transaction.

(5) To properly account for moneys or property placed in the care and responsibility of the brokerage pursuant to section 54-2041, Idaho Code; 

(6) To maintain the confidentiality of specific client information as defined by and to the extent required in this chapter

For the full section of the Code see sections 54-2084 through 54-2088

 

 Limited Dual Agency : A Balancing Act - Explained by the Idaho Real Estate Commission

 

According to Idaho Code 54-2088 Limited Dual Agency and Assigned Agency is allowed.  This means that the agent and brokerage would be representing both buyer and seller in the transaction.  This must be disclosed and agreed to in writing by ALL parties. There are very specific requirements as to how this works and it is made very clear in writing what the buyer and seller are agreeing to.  While certain duties are owed to clients according to Code 54-2087, in a limited dual agency situation not all of these duties are able to be performed, and therefore the code explains how this will work in the case of a limited dual situation (taken directly from the Idaho Code):

(4) All duties and obligations owed to a buyer/client or a seller/client under section 54-2087, Idaho Code, apply to limited dual agency relationships to the extent they do not unreasonably conflict with duties and obligations owed to the other client, except that:

(a) A limited dual agent shall not disclose any of the following without express written consent of the client to whom the information pertains:

(i) That a buyer is willing to pay more than the listing price of the property;

(ii) That a seller is willing to accept less than the listing price for the property;

(iii) The factors motivating the buyer to buy or the seller to sell;

(iv) That a buyer or seller will agree to a price or financing terms other than those offered.

(b) A limited dual agent does not have a duty of undivided loyalty to either buyer/client or seller/client, and by consenting to limited dual agency, the buyer and seller agree to those limitations.

For the full section of the Code see sections 54-2084 through 54-2088

 

If you would like to meet in person to discuss agency and/or would like to be represented in a real estate transaction in the Treasure Valley area please feel free to contact us. 

 

John Boles 208-830-6185 (call/text)

johnboles@boiserealtystore.com

BoiseMeridianRealEstate.com

 

 Serving all of Ada & Canyon Counties and

portions of Gem, Owyhee & East Boise Counties

 

Jon Gosche Real Estate, LLC

Boise, Idaho Real Estate

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Rainer
351,299
Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

Kasey & John Boles I read your agency disclosure form, interesting.  Dual agency with assigned agents and without assigned agents.  Not what we have here.  funny how different R.E. is in different states.  I'm sure your post will answer a lot of questions for your clients.  

Jun 05, 2017 10:17 PM #1
Rainmaker
4,477,971
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Kasey and John.  This is an important subject that all too many consumers don't understand.

Jun 06, 2017 04:24 AM #2
Rainmaker
690,505
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Jim Cheney I have learned a lot on Active Rain about how states differ - never having been licensed and never having bought or sold in a different state, this is the way I know it.  How does it work in your area?

Jun 06, 2017 07:13 AM #3
Rainmaker
690,505
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Gabe Sanders is a big (and important) topic that is often misunderstood and what makes it even more confusing is that people move from state to state thinking they understand it from their previous state and they may move somewhere where it is totally different.  -Kasey

Jun 06, 2017 07:14 AM #4
Rainmaker
4,806,590
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is very good information to share with prospective home buyers.

Jun 06, 2017 09:32 AM #5
Rainmaker
690,505
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Thanks for the comment and for stopping by Roy Kelley!

Jun 06, 2017 09:46 AM #6
Ambassador
2,752,961
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

WOW, now that is one wonderfully answered FAQ, Kasey!  I link to our Working with Real Estate Agents brocuhre on my email signature but, I would definitely consider linking to this article on your email signature.  

WELL DONE!

Jun 06, 2017 12:07 PM #7
Rainmaker
690,505
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Thanks Debe Maxwell, CRS!  I actually also have our state Agency Disclsure Brochure linked in my email signature as well. I hadn't thought about linking to this....Love your new profile pic :-) -Kasey

Jun 06, 2017 01:46 PM #8
Rainmaker
3,240,064
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Kasey and john 

The agency disclosure Idaho explains the consumers   the real estate business arrangement.

Good luck and success.

Lou Ludwig

Jun 06, 2017 08:20 PM #9
Rainmaker
690,505
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Yes, it does Lou Ludwig. Thanks for your comment. -Kasey

Jun 07, 2017 06:34 PM #10
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Kasey & John Boles

Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties
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