RPA-CA 2.B. Confirmation of Agency Relationships
Confirmation of Agency Relationships
It is extremely important to complete RPA Paragraph 2.B regarding confirmation of Agency.
Fill in the Agency Confirmation paragraph 2.B completely: Seller’s Brokerage Firm / Seller’s Agent with names & license numbers and Buyer’s Brokerage Firm / Buyer’s Agent with names & license numbers. Click on link below.
Dual Agency Must be Disclosed to all parties prior to acceptance of Agreement. If your Keller Williams Office represents both the Buyer and Seller, then put in your Keller Williams Office in both Seller’s Brokerage Firm & Buyer’s Brokerage Firm spots [name and license #] and Listing Agent in the Seller’s Agent spot [name and license #] and Buyer’s Agent in the Buyer’s Agent spot [name and license #]. In other words, check all 4 boxes for “both the Buyer & Seller (dual agent).” This is called Dual Agency.
If any boxes are unchecked or any Brokerage Firm names or Agent names are missing, the parties have not confirmed agency. If this section is not completed correctly, then:
- Complete the AC [Confirmation of agency Relationships] form correcting the Agency Confirmation.
- Be sure to have Seller, Buyer, Listing Agent & Buyer’s Agent sign this form and upload to the file in Command.
How and when does the confirmation of the agency relationships take place?
Both Seller’s Brokerage Firm and Buyer’s Brokerage Firm must indicate their agency representation, as soon as practicable. These relationships must then be confirmed either in the purchase contract or in a separate agency confirmation form (C.A.R. Form AC).
IF YOUR BROKER IS A DUAL AGENT, THEN YOU’RE A DUAL AGENT. It does not matter that there is another agent from your Office in the transaction. Dual agency is determined by the Brokerage firm. If there is only one Brokerage firm, then all agents are dual agents. In other words, if the Brokerage firm box is checked for dual agency, then all 4 boxes must be checked for dual agency. However, if the transaction is being conducted in hard copy then agents must be careful to fill out the agency confirmation correctly. Otherwise, you risk misrepresenting your agency relationship – a potentially very costly mistake. Failure to disclose “Dual Agency” may result in rescission of contract [even after Close of Escrow] and damages.
What is a dual agency?
Anytime both agents work under the same KW Office that is a dual agency. Be careful here because even if the Seller and Buyer have different agents, there still may be a dual agency if both Agents work out of the same KW Office. The key inquiry is whether the listing and Buyer’s agents are working within the same Brokerage. If they are, it’s a dual agency.
What are the duties of dual agent with regard to confidential information?
Currently, the agency form gives little guidance to a dual agent who is in possession of a client’s confidential information. It merely states that a dual agent may not disclose to the Buyer that the Seller will accept a price less than the listing price or disclose to the Seller that the Buyer will pay a price greater than the price offered without express permission.
However, effective January 1, 2019, under the real estate clean-up law, the agency form states, in addition to the above duties, that a dual agent will not disclose:
- Confidential information, including facts relating to the Buyer’s or Seller’s
- Financial position
- Motivations
- Bargaining position, or
- Other personal information that may impact price