DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS

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OPTIONS

SELLER AGENCY: The Seller's broker, any cooperating broker, and any salesperson working with either, are representing the Seller's interest and have fiduciary responsibilities to the Seller, but are obligated to treat all parties with honesty. The Seller's broker, any cooperating broker, and any salesperson working with either, without breaching the fiduciary responsibilities to the Seller, may, among other services, provide a potential buyer with information about the attributes of properties and available financing, show properties, and assist in preparing an offer to purchase. The Seller's broker, any cooperating broker, and any salesperson working with either, also have the duty to respond accurately and honestly to a potential buyer's questions and disclose material facts about properties, submit promptly all offers to purchase and offer properties without unlawful discrimination.

BUYER AGENCY: The Buyer's broker, and any salesperson working for this broker, is representing the buyer's interests and has fiduciary responsibilities to the Buyer, but is obligated to treat all parties with honesty. The Buyer's broker, and any salesperson working for this broker, without breaching the fiduciary responsibilities to the Buyer, may, among other services, provide a seller with information about the transaction. The Buyer's broker, and any salesperson working for this broker, also has the duty to respond accurately and honestly to Seller's questions and disclose material facts about the transaction, submit promptly all offers to purchase through proper procedures, and serve without unlawful discrimination.

DUAL AGENCY: A real estate broker when acting for one principal has fiduciary duties that include undivided loyalty, confidentiality and full disclosure, but only to one principal. Dual Agency creates a conflict of interest because the broker's fiduciary dutie confidentiality, full disclosure, and loyalty to one party conflict with those same duties to the other party. A real estate broker can however be the dual agent of both seller and buyer in the same transaction, but only with the knowledge and written consent of seller and buyer. Seller and buyer understand that dual agency can create conflicts of interest; therefore, the broker will not represent the interest of one party to the exclusion or detriment of the interests of the other party.
DUAL AGENCY CONSENT AGREEMENT: Buyer and Seller agree to modify Broker's fiduciary duties so that Broker may act as a disclosed dual agent. Seller and Buyer consent to and waive all claims now or hereafter arising out of or pertaining to any such conflicts of interest, or for alleged breach of fiduciary duty from the creation of this dual agency relationship.

WHAT THE DUAL AGENT CAN DO FOR SELLERS AND BUYERS :
Treat Seller and Buyer with honesty.
Provide helpful information about Property to Buyer.
Respond accurately to questions about Property.
Disclose all known material facts about Property.
Explain real estate terms and procedures.
Assist Buyer in arranging for property inspections.
Assist Buyer with financing options.
Provide information about comparable properties including a Comparative Market Analysis.
Assist with the preparation of the Agreement of Sale.
Provide advice about the types of experts who are available.

WHAT THE DUAL AGENT CANNOT DO FOR SELLERS AND BUYERS .
Disclose confidential information without permission.
Disclose material information about the other party, unless the disclosure is required by law, or unless failure to disclose would constitute fraud or dishonest dealing.
Disclose that Buyer will pay a price or agree to terms other than those contained in the offer, or that Seller will accept a price or terms other than those contained in the listing or Seller's offer.
Disclose the motivation of the Buyer to buy or the Seller to sell.

The disclosure of agency relationships does not relieve a buyer or seller from the responsibility to protect their own interests. This Agreement of Sale between Buyer and Seller is a result of negotiations between Buyer and Seller acting in their own best interests and on their own behalf. Buyer and Seller understand and agree that if provided in the listing or Buyer Agency Agreement as applicable, Broker shall have the right to collect a commission or fee from Seller or Buyer or both, however if a commission or fee is to be collected from more than one party it shall be disclosed to Buyer, Seller and all Brokers.

GENERAL OBLIGATIONS

You should read all agreements to ensure that they adequately express your understanding of the transaction. A Broker or Real Estate Licensee is a person licensed to advise you about real estate. If legal, tax or other advice is desired, you should consult a professional in that field.

Throughout the transaction you may receive more than one disclosure form. You should read its contents each time it is presented to you, considering the relationship, if any, between you and the Broker and Real Estate Licensees in your specific transaction.
Consumer Information Statement...

Real Estate Relationships In New Jersey

In New Jersey, real estate licensees are required to disclose how they intend to work with buyers and sellers in a real estate transaction. (In rental transactions the terms "buyers" and "sellers" should be read as "tenants" and "landlords," respectively.)

1. AS A SELLER'S AGENT OR SUBAGENT, I, AS A LICENSEE, REPRESENT THE SELLER AND ALL MATERIAL INFORMATION SUPPLIED TO ME BY THE BUYER WILL BE TOLD TO THE SELLER.
   
2. AS A BUYER'S AGENT, I, AS A LICENSEE, REPRESENT THE BUYER AND ALL MATERIAL INFORMATION SUPPLIED TO ME BY THE SELLER WILL BE TOLD TO THE BUYER.
   
3. AS A DISCLOSED DUAL AGENT, I, AS A LICENSEE, REPRESENT BOTH PARTIES. HOWEVER, I MAY NOT, WITHOUT EXPRESS PERMISSION, DISCLOSE THAT THE SELLER WILL ACCEPT A PRICE LESS THAN THE LISTING PRICE OR THAT THE BUYER WILL PAY A PRICE GREATER THAN THE OFFERED PRICE.
   
4. AS A TRANSACTON BROKER, I, AS A LICENSEE, DO NOT REPRESENT EITHER THE BUYER OR THE SELLER. ALL INFORMATION I ACQUIRE FROM ONE PARTY MAY BE TOLD TO THE OTHER PARTY.
   Before you disclose confidential information to a real estate licensee regarding a real estate transaction, you should understand what type of business relationship you have with that licensee.
   There are four business relationships; (1) seller's agent; (2) buyer's agent; (3) disclosed dual agent; and (4) transaction broker. Each of these relationships imposes certain legal duties and responsibilities on the licensee as well as on the seller or buyer represented. These four relationships are defined in greater detail below. Please read carefully before making your choice.

SELLER'S AGENT
    A seller's agent WORKS ONLY FOR THE SELLER and has legal obligations, called fiduciary duties to the seller. These include reasonable care, undivided loyalty, confidentiality and full disclosure. Seller's agents often work with buyers, but do not represent the buyers. However, in working with buyers a seller's agent must act honestly. In dealing with both parties, a seller's agent may not make any misrepresentation to either party on matters material to the transaction, such as the buyer's financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property which a reasonable inspection by the licensee would disclose.
     Seller's agents include all persons licensed with a brokerage firm which has been authorized through a listing agreement to work as the seller's agent. In addition, other brokerage firms may accept an offer to work with the listing broker's firm as the seller's agents. In such cases, those firms and all persons licensed with such firms, are called "subagents". Sellers who do not desire to have their property marketed through subagents should so inform the seller's agent.

BUYER'S AGENT
    A buyer's agent WORKS ONLY FOR THE BUYER. A buyer's agent has fiduciary duties to the buyer which include reasonable care, undivided loyalty, confidentiality and full disclosure. However, in dealing with sellers a buyer's agent must act honestly. In dealing with both parties, a buyer's agent may not make any misrepresentations on matters material to the transaction, such as the buyer's financial ability to pay, and must disclose defects of a material nature affecting the physical condition to the property which a reasonable inspection by the licensee would disclose. A buyer wishing to be represented by a buyer's agent is advised to enter into a separate written buyer agency contract with the brokerage firm which is to work as their agent.

DISCLOSED DUAL AGENT
     A disclosed dual agent WORKS FOR BOTH THE BUYER AND THE SELLER. To work as a dual agent a firm must first obtain the informed written consent of the buyer and the seller. Therefore, before acting as a disclosed dual agent, brokerage firms must make written disclosure to both parties. Disclosed dual agency is most likely to occur when a licensee with a real estate firm working as a buyer's agent shows the buyer properties owned by sellers for whom that firm is also working as a seller's agent or subagent.
     A real estate licensee working as a disclosed dual agent must carefully explain to each party that, in addition to working as their agent, their firm will also work as the agent for the other party. They must also explain what affect their working as a disclosed dual agent will have on the fiduciary duties their firm owes to the buyer and to the seller. When working as a disclosed dual agent, a brokerage firm must have the express permission of a party prior to disclosing confidential information to the other party. Such information includes the highest price a buyer can afford to pay and the lowest price a seller will accept and the parties' motivation to buy or sell. Remember, a brokerage firm acting as a disclosed dual agent will not be able to put one party's interests ahead of those of the other party and cannot advise or counsel either party on how to gain an advantage at the expense of the other party on the basis of confidential information obtained from or about the other party. If you decide to enter into an agency relationship with a firm, which is to work as disclosed dual agent, you are advised to sign a written agreement with that firm.

TRANSACTION BROKER
    The New Jersey Real Estate Licensing Law does not require licensees to work in the capacity of an "agent" when providing brokerage services. A transaction broker works with a buyer or a seller or both in the sales transaction without representing anyone. A TRANSACTION BROKER DOES NOT PROMOTE THE INTERESTS OF ONE PARTY OVER THOSE OF THE OTHER PARTY TO THE TRANSACTION. Licensees with such a firm would be required to treat all parties honestly and to act in a competent manner, but they would not be required to keep confidential information. A transaction broker can locate qualified buyers for a seller or suitable properties for a buyer. They can then work with both parties in an effort to arrive at an agreement on the sale or rental of real estate and perform tasks to facilitate the closing of a transaction. A transaction broker primarily serves as a manager of the transaction, communicating information between the parties to assist them in arriving at a mutually acceptable agreement and in closing the transaction, but cannot advise or counsel either party on how to gain an advantage at the expense of the other party. Owners considering working with transaction brokers are advised to sign a written agreement with that firm which clearly states what services that firm will perform and how it will be paid. In addition, any transaction brokerage agreement with a seller or landlord should specifically state whether a notice on the property to be rented or sold will or will not be circulated in any or all Multiple Listing System(s) of which that firm is a member.

YOU MAY OBTAIN LEGAL ADVICE ABOUT THESE BUSINESS RELATIONSHIPS FROM YOUR OWN LAWYER. THIS STATEMENT IS NOT A CONTRACT AND IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY.