We are Family: What does the Buyer or Seller Expect when Loved Ones are Involved?
Cindy Boswell | Real Estate Specialist/Senior Investigator
Do you plan to help family or friends in a real estate transaction? Have you thought about what they expect from you? The Brokerage Relationships in Real Estate Transactions Act (BRRETA) requires you to be an agent or a transaction broker if you are going to represent a buyer or seller even if working with a family member or friend. If you work as a transaction broker, you cannot disclose certain information to put your buyer or seller at an advantage over the other party in the transaction.
Questions to ask yourself:
- Are you able to remain neutral and not work in the buyer or seller’s best interest?
- If I am going to be profiting from the sale, how can I be neutral?
- Do I have any type of ownership in the transaction?
- Is there a conflict of interest working as a transaction broker when the buyer or seller is my spouse, relative, or close friend?
If you have questions about working as a transaction broker, talk to your broker or contact an attorney for legal advice. Per BRRETA, a broker engaged as a transaction broker shall not act as an agent for either party. For obligations and responsibilities of a transaction broker we recommend reviewing K.S.A. 58-30,113.
Whether acting as an agent or transaction broker, disclosure of interest is required in the purchase contract. Per K.A.R. 86-3-19 each licensee shall disclose in the real estate contract or lease any interest that the licensee or licensee’s spouse, parent, child, or sibling has or will have in property being sold, purchased, or leased.
Unlicensed Activity
The Commission has been notified that an unlicensed person auctioning real property in Kansas has entered into a consent judgment agreement with the Johnson County District Court (JCDC) regarding unlicensed real estate activity. In the consent judgment, it shows the unlicensed person agrees to entry of judgment in the amount of $5,000. The Commission previously issued two warning letters to the unlicensed person which is noted in the agreement with the JCDC.
New Website Launched August 13
We are excited to share an updated krec.ks.gov with you and hope you will find the new format user-friendly. Here is what you need to do:
- Clear the cache and history in your Internet browser. Then, familiarize yourself with the new layout.
- Update any links you may have saved to KREC forms, documents, the statute book, etc. While the main domain is the same, the sub-links have changed.
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REALTOR® Practice Changes and the License Law
All Kansas Real Estate Commission (KREC) forms have been approved by the Commission and are in compliance with Kansas real estate license law. Please review the information from the National Association of REALTORS® (NAR) or contact an attorney if you have questions on how to conduct business with the practice changes REALTORS® implemented on August 17. KREC has no jurisdiction over these changes.
If you hold a Kansas real estate license, you are a licensee. Not all real estate licensees are members of the REALTOR® organization, however. It is important for licensees to understand the difference between KREC and the Association of REALTORS®.
Best Wishes, Wendy!
Wendy Alkire, Deputy Director and Director of Compliance at KREC has accepted a position as Assistant Executive Director with the Alabama Real Estate Commission and her last day with KREC is October 1. Wendy has been an integral part of KREC for over 17 years. During that time, she contributed immensely to the industry’s understanding of real estate license laws through the leadership of the compliance team, served as coordinator for the investigative committee, developed courses for licensees and educators, and much more. On behalf of the Kansas Real Estate Commission, thank you and best wishes to Wendy and her family in the next step of her journey.
Disciplinary Actions
Revocations, suspensions, and aggregate fines greater than $500 issued 06/19/24 – 08/20/24.
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Docket
Number
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Last
Name
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First
Name
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License
Number
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Legal
Action
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Effective
Date
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24-2079
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Brooks, III
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Robert
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00034183
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Fine
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07/12/24
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24-2068
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Bush
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Tate
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00226348
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Fine
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06/25/24
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24-2078
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Copaken
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Jon
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00044820
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Fine
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07/12/24
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24-2044
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Dermott
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Seth
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00244205
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Fine
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07/30/24
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24-2062
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Preston
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April
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00232660
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Fine
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07/12/24
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24-2071
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Short
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Jerry
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00232942
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Fine
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06/25/24
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KREC on Social Media
Follow us on social media for weekly posts on renewal reminders, compliance information, regulation spotlights, and more. Find us on these platforms:
Search the Statutes by Keyword
The online statute book contains the most updated rules and regulations for Kansas licensees. Use these two methods to find what you need within the digital PDF document:
- Click the linked bookmarks to search by title.
- Tap Ctrl F on your keyboard to open a search box and browse by keyword.
If you prefer a paper statue book, you may also print the PDF at your convenience. KREC does not mail statute books at this time.
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