Broker Relationships
Single Party or Transaction

Under the Oklahoma Real Estate License Law, a real estate licensee provides services to buyers and sellers as either a transaction broker" or a "single-party broker."
 
 
Definitions
The following definitions are from the Oklahoma Real Estate Commission's Oklahoma Broker Relationships Act.

"Transaction" means any or all of the steps that may occur by or between parties when a party seeks to buy, sell, lease, rent, optiono or exchange real estate and at least one party enters into a broker relationship. such steps may include, without limitation, soliciting, advertising, engaging a broker to list a property, showing or viewing a property, making offers or counteroffers, entering into agreements, and closing such agreements.

"Transaction broker" means a broker who provides services by assisting a party ina transaction without being an advocate for the benefit of that party.

"Single-party broker" means a broker who has entered into a written brokerage agreement with a party in a transaction to provide services for the benefit of that party.

Written brokerage agreement. A broker may enter into a written brokerage agreement to provide services as either a single-party broker or a transaction broker. If a broker does not enter into a written agreement with a party, the broker shall perform services only as a transaction broker. All brokerage agreements shall be deemed to incorporate as material terms the duties and responsibilities set forth below, bsded upon whether the relationship established by the brokerage agreement is a transaction broker relationship or single-party broker relationship.

"Party" means a person who is a seller, buyer, landlord, tenant, or a person who is involved in an option or exchange.

 
 
Transaction Broker Duties and Responsibilities
  1. A transaction broker shall have the following duties and responsibilities, which are mandatory and may not be abrogated or waived by a transaction broker:

    1. To treat all parties with honesty and exercise reasonable skill and care;

    2. To be available to:

      1. receive all written offers and counteroffers,
      2. reduce offers or counter offers to a written form upon request of any party to a transaction, and
      3. present timely such written offers and counter offers.

    3. To inform in writing the party for whom the broker is providing services when an offer is made that the party will be expected to pay certain closing costs, brokerage service costs, and approximate amount of said costs;

    4. To account timely for all money and property received by the broker;

    5. To keep the following confidential information received from a party confidential unless consent to disclosure is granted by the party disclosing the information, the disclosure is required by law, or the information is made public or becomes public as the result of actions from a source other than the broker, the broker shall not disclose:

      • that a party is willing to pay more or accept less than what is being offered,
      • that a party is willing to agree to financing terms that are different from those offered, and
      • the motivation of either party in selling or purchasing the property.

    6. To disclose information pertaining to the property as required by the Residential Property Condition Act

    7. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statues and rules.

    Neither the Buyer nor the Seller shall be liable for the actions or words of the transaction broker.

  2. Such duties and responsibilities set forth in this section shall be performed by a transaction broker if such duties and responsibilities relate to the steps of the transaction which occur while there is a broker relationship [Except as may be provided in a written brokerage agreement between the broker and a party to a transaction, the broker owes no further duties or responsibilities to the party after termination, expiration, or completion of performance of the transaction except: 1) To account for all monies and property relating to the transaction; and 2) To keep confidential all confidential information received by broker during the broker's relations with the party.]

  3. Nothing in the Real Estate License Code requires or prohibits a transaction broker from charging a separate fee or other compensation for each duty or other services provided during a transaction.

  4. If a transaction broker intends to perform fewer services than those required dto complete a transaction, written disclosure shall be preoveded to the party for whom the broker is providing services. such disclosure shall include a description of those steps in the transaciton for which the broker will not perform services, and also state that broker assisting the other party to the transaction is not required to provide assistance with these steps in any manner. (Note: For the purpose of this paragraph, fewer services does not include the services listed above, which cannot be waived or abrogated.)
 
 
Single-Party Broker Duties and Responsibilities
  1. A broker shall enter into a written brokerage agreement prior to providing services as a single-party broker, which shall be deemed to include, and which may not abrogate or waive, the mandatory duties and responsibilities set forth below.

  2. The single-party broker shall have the following duties and responisbilities:

    1. To treat all parties with honesty and exercise reasonable skill and care;

    2. To be available to:

      1. receive all written offers and counteroffers,
      2. reduce offers or counteroffers to a written form upon request of any party to a transaction.
      3. present timely all written offers and counteroffers.

    3. To inform in writing the party for whom the broker is providing services when an offer is made that the party will be expected to pay certain closing costs, brokerage service costs, and approximate amount of said costs.

    4. To keep the party for whom the single-party broker is performing services informed regarding the transaction.

    5. To account timely for all money and property received by the broker.

    6. To keep the following confidential information received from a party confidential, unless consent to disclosure is granted by the party disclosing the information, the disclosure is required by law, or the information is made public or becomes public as the result of actions from a source other than the broker, the broker shall not disclosure:

      • That a party is willing to pay more or accept less than what is being offered,
      • That a party is willing to agree to financing terms that are different from those offered, and
      • The motivation of either party in selling or purchasing the property.

    7. To perform all brokerage activities for the benefit of the party for whom the single-party broker is performing services unless prohibited by law.

    8. To disclose information pertaining to the property as required by the Residential Property Condition Act.

    9. To obey the specific directions of the party for whom the single-party broker is performing services that are not contrary to applicable statues and rules or contrary to the terms of a contract between the parties to the transaction; and

    10. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes and rules.

    The party a single-party broker represents is liable for the actions and words of the single-party broker.

  3. In the event a broker who is a single-party broker for a buyer or a tenant receives a fee or compensation based on a selling price or lease cost of a transaction, such receipt does not constitute a breach of duty or obligation to the buyer or tenant if fully diclosed to the buyer or tenant in the written brokerage agreement.

  4. Such duties and responsibilities set forth in this section shall be performed by a single-party broker if such duties and responsibilities relate to the steps of the transaction which occur while there is a broker relationship. [Except as may be provided in a written brokerage agreement between the broker and a party to a transaction, the broker owes no further duties or responsibilities to the party after termination, expiration, or completion of performance of the transaction except: 1) to account for all monies and property relating to the transaction; and 2) to keep confidential all confidential information received by broker during the broker's relations with the party.]

  5. Nothing in the Real Estate License Code requires or prohibits a single-party broker from charging a separate fee or other compensation for each duty or other services provided during a transaction.

  6. If a single-party broker intends to perform fewer services than those required to complete a transaction, written disclosure shall be provided to the party for whom the broker is providing services. Such disclosure shall include a description of those steps in the transaction for which the broker will not perform services, and also state that broker assisting the other party to the transaction is not required to provide assistance with these steps in any manner. (Note: For the purpose of this paragraph, fewer services does not include the services listed above, which cannot be waived or abrogated.)

 
 
Differences between Transaction and Single-Party Broker Duties:
  • The single-party broker must have a written agreeement. The transaction broker can have an oral or written agreement to represent a party.

  • The party a single-party broker represents is liable for the actions and words of the single-party broker. The party a transaction broker represents is not liable for the words or actions of the transaction broker.

  • The single-party broker works for the benefit of the party he represents. The transaction broker cannot be an advocate for the party he represents.

  • The single-party broker must obey the specific instructions of the party he represents as long as they are not contrary to applicable statues and rules or contrary to the terms of a contract between the parties to the transaction. A transaction broker does not have this obligation.

  • A single party broker cannot provide single-party brokerage services to both parties to a transaction. However, a single-party broker can represent one party to a transaction as a single-party broker and the other party to the transaction as a transaction broker. In this event, the broker shall disclose in writing to the party for whom the broker is providing services as a transaction broker:

    1. the difference between a transaction broker and a single-party broker.

    2. that the broker is a single-party broker for the other party and performs services for the benefit of the other party in the transaction.

  • The transaction broker can represent both parties to the transaction as a transaction broker.

 
 
Changing from Single-Party to Transaction Brokerage Services

(NOTE: A Single-party and a transaction broker are required by law to present all written offers regardless of an instructions from the Seller to the contrary.)

There are instances where the single-party brokerage services provided by the broker must be changed to transaction brokerage services. For example, if the broker is providing single-party brokerage services to both a seller and a buer and that buyer wants to make an offer on the seller's home, the buyer or seller must agree to change to transation brokerage services. When this occurs, the broker must obtain written consent (wjich may be included in te written brokerage agreement or in a separate document) from the Seller or Buyer containing the following information:

  • A description of the transaction or type of transactions that might occur in which the single-party broker seeks to obtain consent to become a transaction broker.

  • A statement that in such transactions the single-party broker would perform services for more than one party whose interest could be different or even adverse and that would require the broker to seek the consent of each party to permit a change in the brokerage relationship.

  • A statement that by giving consent in such transactions:

    1. the party will allow the broker to change broker's relationship from performing servicws as a single-party broker to performing services as a transaction broker.

    2. the brokere will no longer provide services for the benefit of the party, but may only assist in such transactions,

    3. the broker will not be obligated to obey the specific directions of the party, but will assist all parties to such transactions,

    4. the party will not be vicariously liable for the acts of the broker and associated associates, and

    5. the broker's obligation to keep confidential information received from the party confidential is not affected

  • A statement that the party is not required to consent to the change in the brokerage relationships in such transactions and may seek independent advice.

  • A statement that the consent of the party to change the brokerage relationship in such transactions has been given voluntarily and that the written consent has been read and understood by the party, and

  • A statement that the party authorizes the broker to change the brokerage relationship in such transactions and to assist all parties to such transactions as a transaction broker.

If neither party gives consent as described above, the broker shall withdraw from providing services to all but one party to a transaction.

If only one party gives consent as described above, the broker may consenting party and continue to act as a single-party broker for the nonconsenting party. The broker shall disclose in writing to the consenting party that the broker remains a single-party broker for the nonconsenting party and performs services for the benefit of the nonconsenting party.

Under the Contract paragraph "Broker Relationship Disclosure and Information," the Listing Broker and the Cooperating Broker confirm their brokerage relationships.

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