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S.F. No. 1020 - Designated agency in real estate transactions (SCS1020A-4, delete-everything amendment)
 
Author: Senator Rich Draheim
 
Prepared By: Christopher B. Stang, Senate Counsel (651/296-0539)
 
Date: March 4, 2019



 

Sections 1 to 4 add definitions for purposes of the bill. “Designated agency” means the buyer and seller are represented by the same brokerage, but the buyer’s agent is designated in the buyer’s broker agreement and exclusively represents the buyer, and the seller’s agent is designated in the seller’s broker agreement and exclusively represents the seller. "Dual agency" means the buyer and seller are both represented by the same brokerage, and all salespersons represent each side equally.

Section 5 modifies disclosure statements required for listing agreements to describe the differences between dual agency and designated agency, how the type of agency affects the parties, and the supervising broker’s role. Seller's instructions to broker modified accordingly.

Section 6 modifies disclosure statements for buyer’s broker agreements to describe the differences between dual agency and designated agency, how the type of agency affects the parties, and the supervising broker’s role. Buyer's instructions to broker modified accordingly.

Section 7 modifies the real estate agency disclosure form to reflect the adding of the option of designated agency.

Section 8 modifies the statute relating to creation of an agency relationship to reflect adding the option of designated agency.

Section 9 clarifies responsibilities of brokers relating to supervision of personnel.

Section 10 prohibits a supervising broker from acting as a designated agent on behalf of one party to a transaction if the supervising broker is responsible for supervising the salesperson or broker representing the other party in the transaction.

Section 11 makes the act effective January 1, 2020.

 
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