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Question
On May 1, 2023, Salesperson Roger met with the owners of 123 Main Street in Somewhere, Kansas. The owners decided to list the property for sale and signed a seller agency agreement which named Roger as a designated seller’s agent.
On May 2, 2023, a potential buyer contacted Salesperson Roger to set up a showing on the Main Street property. Salesperson Roger did not know the potential buyer but agreed to meet him at the property. The potential buyer loved the property and had Salesperson Roger write up an offer. The property owners accepted the offer and the transaction closed on June 15, 2023.
On July 1, 2023, KREC conducted a compliance review on Salesperson Roger’s supervising broker’s records. The brokerage relationship disclosure in the purchase contract for 123 Main Street showed Salesperson Roger was a designated seller’s agent for the seller and a transaction broker for the buyer.
Is Salesperson Roger’s brokerage relationship disclosure correct in the purchase contract?
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Answer
No. A real estate licensee can have only one type of brokerage relationship in a transaction. Salesperson Roger was named as a designated seller’s agent in the seller agency agreement. Salesperson Roger was a designated seller’s agent in this transaction.
K.S.A. 58-30,103(a). Except when acting as a transaction broker or solely as a seller, buyer, landlord or tenant, a broker shall act only as a statutory agent in any real estate transaction. A licensee shall not act as a dual agent or in a dual capacity of agent and undisclosed principal in any transaction.
K.S.A. 58-30,113(a). A broker engaged as a transaction broker shall not act as an agent for either party.
K.S.A. 58-30,102(k). ‘‘Designated agent’’ means a licensee affiliated with a broker who has been designated by the broker, or the broker’s duly authorized representative, to act as the agent of a broker’s buyer or seller client to the exclusion of all other affiliated licensees.
K.S.A. 58-30,102(u). ‘‘Transaction broker’’ means a broker who assists one or more parties with a real estate transaction without being an agent or advocate for the interests of any party to such transaction. The term includes the broker’s affiliated licensees.
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