What You Need to Know About Broker Services in Oklahoma
The Oklahoma Real Estate Commission (The OREC) has legal authority over real estate licensees and brokers in the State of Oklahoma.
As a consumer, what do you need to know?
According to the OREC, a real estate broker may work with one or both Parties to a real estate transaction.
The Oklahoma Broker Relationships Law (Title 59, Oklahoma Statutes, §858-351 — 858-363) allows a real estate firm to provide brokerage services to both Parties to the transaction. This could occur when a firm has contracted with a seller to sell their property and a prospective buyer contacts that same firm to see the property. If the prospective buyer wants to make an offer on the property, the firm must now provide a written notice to both the buyer and seller that the firm is now providing brokerage services to both Parties to the transaction.
Oklahoma real estate brokers have mandatory duties and responsibilities to all Parties in a real estate transaction.
These duties and responsibilities shall be described and disclosed in writing prior to signing a contract to sell, purchase, lease, option or exchange real estate. These duties and responsibilities are to:
- Treat all Parties with honesty and exercise reasonable skill and care.
- Receive all written offers and counter offers, reduce offers or counter offers to a written form upon request of any party to a transaction and present timely all written offers and counter offers (unless specifically waived in writing by a party).
- Timely account for all money and property received by the broker.
- Disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act.
- Comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes and rules.
- Keep confidential information received from a party or prospective party confidential unless written consent is granted by the party, the disclosure is required by law, or the informationis public or becomes public as the result of actions from a source other than the broker. Confidential information includes:
- That a party is willing to pay more or accept less than what is being offered
- That a party or prospective party is willing to agree to financing terms different from those offered
- The motivating factors of the party or prospective party purchasing, selling, leasing optioning or exchanging the property
- Any information specifically designated as confidential by the party unless such infromation is public.
A broker has additional duties and responsibilities only to a party for whom the broker is providing brokerage services.
- Inform the party in writing when an offer is made that the party will be expected to pay certain costs, brokerage service costs and the approximate amount of the costs.
- Keep the party informaed regarding the transaction.
If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker shall provide written disclosure to the party for who the broker is providing services. The disclosure shall include a description of those steps in the transaction that the broker will not provide and state that the broker assisting the other party in the transaction is not required to provide assistance with these steps in any manner.
Disclosure of these duties and responsibilities is required in writing. The duties and responsibilities disclosed by the broker shall be confirmed in writing by each party in a separate provision, incorporated in or attached to the contract to purchase, option or exchange real estate.
Services provided to a tenant do not automatically create a broker relationship. When a broker provides brokerage services to a landlord under a property management agreement, the services provided to the tenant by the broker shall not be construed as creating a broker relationship between the broker and the tenant unless otherwise agreed to in writing; however, the broker owes to the tenant the duties of honesty and exercising reasonable skill and care.
For more information, visit www.orec.ok.gov