Overall, IAR members have adjusted well to the changes and expressed positive reactions to the amended law. However, we still receive numerous agency inquiries and felt it appropriate to assist members in obtaining a better understanding of agency law by reviewing several of the more frequently asked questions. As always, we appreciate your support on the LISA Legal Hotline and welcome your telephone calls and faxes. Principal brokers need to eliminate all references to subagency from their office policies and all other documents. No, the Buyer Understanding Regarding Agency form or similar forms are no longer required.
Some firms present their office policy in their firm s brochure.
Disclosure after the fact may lead to potential litigation. There seems to be some confusion as to when a limited agency relationship exits. The answer to this question depends upon the principal broker s office policy with regard to agency. Some principal brokers, particularly those in smaller offices, continue to practice disclosed limited agency in all in-house transactions. Thus, this can be accomplished by incorporating the written, informed consent to limited agency in the listing contract and written office policies with buyer and seller or each party s consent can be obtained later in the transaction when limited agency arises by having the parties sign a limited agency agreement.