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Warnings

All Licensees Should:

Learn and understand the new Brokerage Relationship Act so that you can explain it to buyers, sellers, renters and landlords. After you explain the law, ask questions that can only be answered correctly if the party understood your explanation. You want to get informed consent. That is, evidence that the party to whom you are disclosing actually understood what was just disclosed.

Disclose your brokerage relationship at the earliest practical opportunity. Do it when what you are doing requires a real estate license. Under this new law, you will want disclosures to be made much earlier. To delay a disclosure, simply because you plan to act as a Transaction broker -- which requires nothing in writing -- is to risk becoming an accidental agent! It is vitally important to make your brokerage disclosures at the "earliest practical opportunity".

Don’t think that just because you didn’t get anything in writing that you are automatically a Transaction broker. The law says that if you don’t have anything in writing then you can only provide services as a Transaction broker. If you behave like an agent for a party without a written agreement, you may be adjudged to be an agent (a violation of law) or a Single-Party broker (also a violation of law if you do not have a written agreement).

Do not say that the Law of Agency in Oklahoma has been abrogated. It has not. Do not say that the Law of Agency for the Real Estate industry in Oklahoma has been abrogated. It has not. What was abrogated was only the "duties and responsibilities" of a real estate licensee. You should not be talking about abrogation at all unless you really know what you are talking about.

Do not tell a party that he will not be liable for the actions of a Transaction broker. A person could easily be held liable for the actions for a Transaction broker if he was a party to the wrongdoing. A party might even be held liable for the actions of a Transaction broker, even when he had no knowledge of the wrongdoings, if he were judged to have knowingly selected a transaction broker who had a reputation for questionable business practices. You are in no position to tell someone that he will not be liable for the actions of another. You do not know the circumstances and you can never tell what a judge and jury will do for certain.

Be careful what you say about "vicarious" liability. If you say "vicarious" liability, the public is going to hear only the word "liability". They will not hear "vicarious". As a single party broker, there is no problem saying that your employing party may be vicarious liable for your actions. However, when you disclose to a party, as a Transaction broker, do not say: "You will not be held vicarious liable for my actions". Better to say this: "As your transaction broker, it is the intention of the legislature that you not be held viciously liable for my actions. Of course, you could still be held liable for other types of liability depending on the circumstances." You are in no position to make a legal guarantee that someone will not be held vicariously liable for your actions. Be careful what you say about liability.

Just because you may no longer have a fiduciary duty of Loyalty, does not mean you can be disloyal! Remember: the Code states that you can have your license revoked for improper or dishonest behavior. Being disloyal will almost always be improper and dishonest. Take heed.

Just because you may no longer have a duty of obedience as a Transaction broker, does not mean you can disregard lawful instructions. Remember: the Code states that you can have your license revoked for improper or dishonest behavior. Disregarding lawful orders or instructions will almost always be improper and dishonest. Take heed. If a party orders you to do something that is lawful and you do not intent to do it, be sure to tell the party that you are not going to do it.

Remember, if a Party for whom you are performing services as a Transaction broker, puts substantial reliance in your carrying out a lawful order, which you lead him to believe you were going to do, and you don't do it because you do not have a duty of obedience, your "goose is probably cooked"!

Be care with the exceptions in new law of confidentiality. Just because something is of "public record" and legally does not have to be kept confidential, disclosing it in some circumstances could make you an advocate for a party you are not allowed to be an advocate for. It could also be considered improper or dishonest to disclose information which by law does not have to be held confidential but was given to you in "confidence". In short, really give thought before revealing confidential information.

This is a Preliminary List. Check back for more information as it becomes available.

Brokerage Relationships Act Tapes