If you're new to the real estate world, you may be wondering how the relationship between a broker and a buyer or a seller works. The Brokerage Relationship Disclosure Form delineates the types of representation available to you, the consumer, whether you are a buyer or a seller. As agents, we can advise you on the advantages and limitation of different types of representation. At the end of the day, the type of representation you choose is up to you, the consumer.
Excerpts from the Disclosure Form appear below, and you can access the full document here. By New Hampshire law, this form must be presented during your first meeting with a broker (in person or on the phone), so that you are clear about your relationship with the broker and about the confidentiality status of any information that you share.
Upon our first meeting, you are considered a customer. As a customer, the licensee with whom you are working is not obligated to keep confidential the information that you might share with him or her. As a customer, you should not reveal any confidential information that could harm your bargaining position.
As a customer, you can expect a real estate licensee to provide the following customer-level services:
- To disclose all material defects actually known by the licensee pertaining to the on-site physical condition of the real estate;
- To treat both the buyer/tenant and seller/landlord honestly;
- To provide reasonable care and skill;
- To account for all monies received from or on behalf of the buyer/tenant or seller/landlord relating to the transaction;
- To comply with all state and federal laws relating to real estate brokerage activity; and
- To perform ministerial acts, such as showing property, preparing and conveying offers, and providing information and administrative assistance.
Clients receive more services than customers. You become a client by entering into a written contract for representation as a seller/landlord or as a buyer/tenant.
As a client, in addition to the customer-level services, you can expect the following client-level services:
- Lawful Obedience; and
- Promotion of the client’s best interest.
For seller/landlord clients this means the agent will put the seller/landlord’s interests first and work on behalf of the seller/landlord.
For buyer/tenant clients this means the agent will put the buyer/tenant’s interest first and work on behalf of the buyer/tenant.
Client-level services also include advice, counsel and assistance in negotiations.
For additional detail about your choices in real estate relationships, access the full Brokerage Relationship Disclosure Form here.