Brokerage Relationship Disclosure

PURPOSE: The commission is proposing this rule in order to comply with provisions in HB 1601 of the 89th General Assembly and HB 866 of the 90th General Assembly. (1) Licensees acting with or without a written agreement for brokerage services pursuant to sections 339.710 to 339.860, RSMo, are required to disclose such relationships in the following instances and manner: (A) Seller’s/Landlord’s Agent or Subagent. 1. A licensee acting as an agent or subagent of the seller/ landlord shall disclose this agency status no later than the first showing to a buyer/tenant who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the buyer/tenant is represented by another licensee, the disclosure may be made to the buyer/tenant or their agent upon first contact with the buyer/tenant or their agent, whichever occurs first. 3. If the seller’s/landlord’s agent is cooperating with another licensee under a written agreement of subagency or through a unilateral offer of subagency, the disclosure made by the subagent shall serve as the disclosure of the seller’s/ landlord’s agent. 4. In a cooperative sale/lease between a seller’s/landlord’s agent and a licensee working with a buyer/tenant as a transaction broker, the seller’s/landlord’s agent shall make disclosure of this agency status to the buyer/tenant and also to the licensee assisting the buyer/tenant upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the buyer/tenant, their agent, or transaction broker, the seller’s/landlord’s agent shall disclose this agency status to the buyer’s/tenant’s agent or transaction broker when first contact is established pursuant to paragraph (B)5. or (E)5. of this section. 6. If the landlord’s agent is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)–(e), RSMo, make the disclosure described herein on behalf of the landlord’s agent; (B) Buyer’s/Tenant’s Agent or Subagent. 1. A licensee acting as an agent or subagent of the buyer/ tenant shall disclose this agency status no later than the first showing to a seller/landlord who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the seller/landlord is represented by another licensee, the disclosure may be made to the seller/landlord or their agent upon first contact with the seller/landlord or their agent, whichever occurs first. 3. If the buyer’s/tenant’s agent is cooperating with another licensee under a written agreement of subagency or through a unilateral offer of subagency, the disclosure made by the subagent shall serve as the disclosure of the buyer’s/tenant’s agent. 4. In a cooperative sale/lease between a buyer’s/tenant’s agent and a licensee working with a seller/landlord as a transaction broker, the buyer’s/tenant’s agent shall make disclosure of this agency status to the seller/landlord and also to the licensee assisting the seller/landlord upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the seller/landlord, their agent, or transaction broker, the buyer’s/tenant’s agent shall establish first contact with the seller’s/landlord’s agent or transaction broker and disclose this agency status prior to the presentation of an offer to exchange, purchase, rent, or lease. 6. If the landlord’s agent or transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)–(e), RSMo, receive the disclosure described herein on behalf of the landlord’s agent or transaction broker; (C) Dual Agent. 1. A licensee acting as a dual agent in a real estate transaction shall disclose this agency status immediately upon its occurrence to all parties of a real estate transaction. 2. In a non-designated agency transaction, the disclosure made by the licensee procuring the buyer/tenant (selling licensee) shall serve as disclosure for the listing licensee and designated broker. 3. A designated broker who becomes a dual agent and does not personally represent any of the parties in a designated agency transaction shall not be required to make disclosure of this agency status provided written consent was given by all parties to the real estate transaction pursuant to 339.750.1, RSMo; (D) Transaction Broker Assisting Seller/Landlord. 1. A licensee assisting a seller/landlord as a transaction broker who has not been deemed a transaction broker pursuant to section 339.710(19)(c), RSMo, shall disclose this brokerage relationship no later than the first showing to buyer/tenant who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the buyer/tenant is represented by another licensee, this disclosure may be made to the buyer/tenant or their agent upon first contact with the buyer/tenant or their agent, whichever occurs first. 3. If the licensee has not entered into a written transaction brokerage agreement with the seller/landlord, the licensee shall disclose the licensee’s transaction broker status to the seller/landlord upon establishing such relationship with the seller/landlord. 4. In a cooperative sale between a seller’s/landlord’s transaction broker and a licensee working with a buyer/tenant as a transaction broker, the seller’s/landlord’s transaction broker shall make disclosure of this brokerage relationship status to the buyer/tenant and also to the licensee assisting the buyer/tenant upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the buyer/tenant, or their agent or transaction broker, the seller’s/landlord’s transaction broker shall disclose this brokerage relationship status to the buyer’s/ tenant’s agent or transaction broker when first contact is established pursuant to paragraph (B)5. or (E)5. of this section. 6. If the landlord’s transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)–(e), RSMo, make the disclosure described herein on behalf of the landlord’s transaction broker; (E) Transaction Broker Assisting Buy-er/Tenant. 1. A licensee assisting a buyer/tenant as a transaction broker who has not been deemed a transaction broker pursuant to section 339.710(19)(c), RSMo, shall disclose this brokerage relationship no later than the first showing to a seller/landlord who is not represented by or working with another licensee pursuant to sections 339.710 to 339.860, RSMo. 2. If the seller/landlord is represented by another licensee, this disclosure may be made to the seller/landlord or their agent upon first contact with the seller/landlord or their agent, whichever occurs first. 3. If the licensee has not entered into a written transaction brokerage agreement with the buyer/tenant, the licensee shall disclose the licensee’s transaction broker status to the buyer/ tenant upon establishing such relationship with the buyer/ tenant. 4. In a cooperative sale/lease between a buyer’s/tenant’s transaction broker and a licensee working with a seller/landlord as a transaction broker, the buyer’s/tenant’s transaction broker shall make disclosure of this brokerage relationship status to the seller/landlord and also to the licensee assisting the seller/ landlord upon first contact with each respective party. 5. In a contemplated real estate transaction where no contact occurs with the seller/landlord, their agent, or transaction broker, the buyer’s/tenant’s transaction broker shall establish first contact with the seller’s/landlord’s agent or transaction broker and disclose this brokerage relationship status prior to the presentation of an offer to exchange, purchase, rent, or lease. 6. If the landlord’s agent or transaction broker is conducting property management pursuant to 20 CSR 2250-8.200, the unlicensed office personnel may, in their performance of the duties enumerated in section 339.010.5(5)(a)–(e), RSMo, receive the disclosure described herein on behalf of the landlord’s agent or transaction broker; (F) Transaction Broker Pursuant to 339.710(19)(c), RSMo. 1. A licensee who becomes a transaction broker pursuant to 339.710(19)(c), RSMo, shall disclose this transaction broker status immediately upon its occurrence to all parties to the real estate transaction to be confirmed in writing prior to the execution of the contract. 2. The disclosure of the licensee procuring the buyer (selling licensee) shall serve as disclosure for the listing licensee and designated broker. 3. A designated broker who becomes a transaction broker and does not personally represent any of the parties in a designated agency transaction shall not be required to make disclosure of this status provided written consent was given by all parties to the real estate transaction. AUTHORITY: sections 339.120, 339.720, and 339.770, RSMo Supp. 2008.* This rule originally filed as 4 CSR 250-8.095. Original rule filed Oct. 26, 1987, effective July 1, 1988. Amended: Filed Sept. 1, 1989, effective Dec. 28, 1989. Amended: Filed Nov. 15, 1991, effective June 25, 1992. Rescinded and readopted: Filed Dec. 1, 1997, effective Sept. 1, 1998. Rescinded and readopted: Filed Jan. 14, 2000, effective July 30, 2000. Moved to 20 CSR 2250-8.095, effective Aug. 28, 2006. Amended: Filed April 3, 2009, effective Sept. 30, 2009. AND INSURANCE *Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008; 339.720, RSMo 1996, amended 1998, 1999, 2002, 2005; and 339.770, RSMo 1996, amended 1997, 1998, 2002.