Fill in the Information…Before You Get the Signatures
Cindy Boswell | Real Estate Specialist/Investigator
Have you been in a situation where two people hear the same thing but recall it differently? In a real estate transaction, having all the financial obligations and commitments in writing prevents misunderstandings between the parties and helps maintain compliance with license law.
Kansas statute 58-3062(a)(12) specifically states certain items that must be included in the purchase contract before the contract is signed by the buyer and seller. “To Be Determined” in the purchase contract is not compliant with the statute. Before the buyer and seller sign the purchase contract, it must include:
- A definite purchase price
- The method of payment
- The property description
- The method of determining the closing date
In addition, K.S.A. 58-3062(a)(11) states the financial obligations and commitments between parties to the purchase agreement must be in writing expressing the exact agreement of the parties.
Don’t let your transaction turn into a he said/she said argument. Without a written agreement, different interpretations or assumptions can occur. Documenting the exact agreement in writing should leave no room for interpretations or assumptions and ultimately makes for a smoother transaction.
Keep Your Email Address Up to Date
Not only are licensees required to report changes to their residence address to KREC within 10 days, they must also report a change to their email address. Login to your E-Gov account to ensure all contact information is correct or make changes if needed. KREC communicates primarily via email so it is important to keep a current email address on file.
Are You My Agent or Not?
Wendy Alkire | Deputy Director, Director of Compliance
For those who work with brokerage relationships daily it seems easy to understand, but most buyers and sellers do not have a full understanding of how brokerage relationships work. Many buyers and sellers assume the licensee assisting them will look out for their interests. This is a common misconception which can lead to a complaint being filed with KREC, bad reviews, or even a lawsuit.
At the first practical opportunity, licensees are required to provide the Brokerage Relationships Brochure to potential buyers and sellers. The brochure gives an overview of the types of brokerage relationships allowed by Kansas law and provides an opportunity for the licensees to explain the options.
To be an agent for a buyer or seller, there must be a written agency agreement. A seller agency agreement must be entered into prior to the licensee working on behalf of the seller. A buyer agency agreement must be entered into prior to the signing of an offer. If your buyer or seller chooses not to sign an agency agreement, the only option is to work as a transaction broker since a transaction brokerage agreement can be verbal.
In some cases, a licensee is an agent for one party and is assisting the other party. For example, a licensee who is a seller’s agent may be assisting an unrepresented buyer in purchasing the seller’s property. Ensuring the unrepresented buyer knows the licensee has an obligation to work in the best interest of the seller is important.
Next time you provide the brochure to a potential buyer or seller, take the extra time to make sure they understand what it all means. Providing enough information to help your buyers and sellers understand brokerage relationships is key in managing expectations.
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