Home Buying in 94539>Question Details

Sasha, Other/Just Looking in 94539

Question about "Disclosure regarding Real Estate Agency Relationships" form ....

Asked by Sasha, 94539 Wed Jan 27, 2010

My friend bought a new house in Fremont..near kato rd and did not go thru an agent. Does my friend still have to sign a "Disclosure regarding Real Estate Agency Relationships" form even though she didn't have an agent Thanks!

Help the community by answering this question:



In my opinion (and having worked with many a sales person at a new homes development), the forms signed by most buyers are not CAR forms, and, as such, there is probably a substitute for the DA that has been signed or contains parts of the DA in the paperwork.

As to your other comment about the developer's sales staff, sometimes these are actual employees of the developer (KB, Shea, Ryland, Taylor Morrison, Toll Bros all use their own in-house employees and licensed sales agents as sales staff). However, other developers (often smaller developers) will use hire a sales agency, such as Ryness (one of the largest) to supply trained new home sales agents to the community. The important thing to remember, however, is that you will not know and will not be told if the agent works for a sales company or directly for the developer.

Since your friend is already in contract with the developer, it's best to refer all questions about the transaction and necessary paperwork directly to the salesperson at the new homes community. As mentioned above, the developer will use forms that are NOT CAR or California Association of Realtor forms (of which the Disclosure Regarding Real Estate Agency Relationships is a part), but will use, instead, specific forms created by the developer's legal counsel. This is the reason why many of the forms will be unique and will not approximate the forms used by Realtors for existing home sales.

Good luck!

Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616
Email: GraceAreaProRealty@att.net
1 vote Thank Flag Link Wed Jan 27, 2010
Thank you all for answering ...I really appreciate your time and effort and I also learned in the interim....Will forward your comments to my friend.

Grace...I checked with my friend . It is the CAR form - Disclosure regarding Real Estate Agency Relationships (civil code sections 2079.16 and 2079.13 thru 2079.24)
0 votes Thank Flag Link Thu Jan 28, 2010
Is it that the people working at the new home complex has real estate licenses? Most likely
0 votes Thank Flag Link Wed Jan 27, 2010
Hey Sasha,
I want to add one more point to all the great advice you received here. Given that the "Disclosure regarding Real Estate Agency Relationship" is just an informational document and does not establish any agency relationship with any broker, your friend has to look out for the form "Confirmation of Real Estate Relationship" where agents for Buyer and Seller are identified. There you will see clearly if/which builder "staff" is indeed a real estate broker representing your friend.

Btw, if these were standard California Assoc of Realtors (CAR) forms they would be called the following:
- Confirmation of Real Estate Relationship (C.A.R. Form AC)
- Disclosure regarding Real Estate Agency Relationship (C.A.R. Form AD).

Can I help more? We're ready when you are!

Mihaela Mattes
Century 21 Realty Alliance
1528 South El Camino Real, Suite 110
San Mateo, CA 94402
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t 650.558.5208
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email: mihaela.mattes@century21.com
website: http://www.e-realtorone.com

I donate 20% of my professional fees to The LAM Foundation http://www.thelamfoundation.org to help women diagnosed with this cruel disease.
Web Reference: http://www.e-realtorone.com
0 votes Thank Flag Link Wed Jan 27, 2010
Hi Sasha:

The form you referred to 'Disclosure Regarding Real Estate Agency Relationship' is really an advisory, telling your friend the responsibiliities a listing agent and/or a selling agent have towards their clients.

Your friend can just acknowledge that fact. CAR has a form 'Buyer Non-Agency Agreement' of which your friend should take a look and sign.

Sylvia Barry
Marin, Sonoma, S.F. Bay Area
Frank Howard Allen Realtors
0 votes Thank Flag Link Wed Jan 27, 2010
Sylvia Barry,…, Real Estate Pro in Marin County, CA
Sasha, now that you have confirmed the purchase is via a Builder please DO have your friend read the document I provided below - it's quite an "eye-opener."

Best, Steve
0 votes Thank Flag Link Wed Jan 27, 2010
Hi Sasha, I was guessing that she is buying one of the new homes off warm spring Blvd. near kato, when you said near kato. Yes the people in the office there do work for the builder but they are licensed Real Estate agents. They preform dual agency as Steve mentioned....But if you want someone who has your best interest in mind you need to have your own Realtor. I think a lot of people don't know that when you are the buyer you do not have to pay your Realtor they are paid in this case by the builder and in the case of an existing home they are paid by the seller.....Dawn
Web Reference: http://DawnRivera4Homes.com
0 votes Thank Flag Link Wed Jan 27, 2010
...just wanted to add that she got a new house from builder which is about to begin construction...I always assumed the sales person on site office are builders staff . Sasha
0 votes Thank Flag Link Wed Jan 27, 2010
Hi Sasha, the answer is yes.

Per Civil Code § 2079.14:
"When the listing brokerage company also represents the Buyer, the Listing Agent shall have one Agency Disclosure form signed by Seller and one signed by Buyer."

Your question raises an extremely important topic many Buyers are not aware of, which is Dual Agency. While "DA" is not illegal (in CA), you do give up one important benefit by entering into such an agreement: advantageous advice. You can read more about this here:

Your question does not state that your friend purchased directly from a Builder; however, if this is in fact what happened, I would encourage other Buyers who are contemplating the same type of purchase to review the following document:

Best, Steve
0 votes Thank Flag Link Wed Jan 27, 2010
I assumed your friend's real estate transaction is in California.

Based on your inquiry of the subject document, I assumed your friend is using the "seller's" agent to transact the purchase. If yes, then he/she is being asked to review and sign a "dual" agency disclosure.

Yes, if your friend is working with the seller's agent, then he/she needs to review and decides if he/she wants to sign it. No one can "force" your friend to sign anything he/she doesn't want to sign.

However, California real estate laws requires real estate broker to perform minimum required "disclosures" so your friend will need to sign a form to "acknowledge" that he/she has received the disclosures.

It doesn't cost your friend a dime to have his/her own agent so that the agent can help to explain the miriad of real estate documents and help to protect the buyer's position. So why doesn't he/she has his/her own agent representation?
0 votes Thank Flag Link Wed Jan 27, 2010
Hi Sasha, If your friend did not bring an agent with her to be on her behalf she missed out on professional expertize at no cost to herself. That said even if she did not have her own agent she used the builders agent.......So she used the builder's agent instead of using her own...thats not really in her best interests. Had she brought her own agent, she would have had his fiduciary duty on her behalf....get my meaning?....so she would still sign the agency form......Dawn
Web Reference: http://DawnRivera4Homes.com
0 votes Thank Flag Link Wed Jan 27, 2010
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