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:
3)Limited Dual Agency
4)Limited Dual Agency with Assigned Agents
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
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.
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)
Serving all of Ada & Canyon Counties and
portions of Gem, Owyhee & East Boise Counties
Jon Gosche Real Estate, LLC
Boise, Idaho Real Estate