Agency/Disclosure Question

[Josh K]

As a licensed real estate broker, I know you must verbally disclose to a seller that you are an agent. But if you work with an unrepresented seller (ie an FSBO seller) as the buyer in a transaction, are you creating any implied dual agency to be an agent of that seller? Or is there a written agreement that can be used in this situation to make it clear that you are not representing the seller?

Note my question has to do with the laws of agency, there is no commission in this case so that is not a concern.

[Aaron Mazzrillo]

I'm a CA Broker and I recommend you contact the CA DRE to get your question answered. Your question is confusing because it sounds like you are buying a FSBO property, but it also kind of sounds like you are representing a buyer of a FSBO property. In case of the later, there is a form in ZipForms called Disclosure Regarding Real Estate Agency Relationship. I would complete that form and have your non-represented seller sign it. There is also SNA-11, Seller Non-Agency Agreement which states you are a licensed Broker and that you are not representing the seller.

If you are acting as the buyer and negotiating directly with the seller to acquire the property for yourself, you still have to disclose your licensing status, and there are rules about making a profit on it if you intend to flip it. Call the DRE.

And as far as doing something verbally with a civilian, imagine standing before the judge and explaining that. Always get it in writing.