58-30,107. Minimum requirements of buyer's or tenant's agent.
58-30,107
58-30,107. Minimum requirements of buyer's or tenant's agent.(a) A buyer's or a tenant's agent shall be a statutory agentwith the duty and obligation to:
(1) Perform the terms of the written agreement made with the client;
(2) promote the interests of the client with the utmost good faith,loyalty and fidelity, including:
(A) Presenting in a timely manner all offers to and from the client whensuch offer is received prior to the closing of the sale unless the buyerinstructs the broker in the agency agreement not to submit offers after theclient enters into a purchase contract;
(B) disclosing to the client all adverse material facts actuallyknown by the licensee; and
(C) advising the client to obtain expert advice as to materialmatters about which the licensee knows but the specifics of which arebeyond the expertise ofthe licensee;
(3) account in a timely manner for all money and propertyreceived;
(4) comply with all requirements of this act and rules andregulations adopted hereunder; and
(5) comply with any applicable federal, state and local laws,rules and regulations and ordinances, including fair housing and civilrights statutes or rules and regulations.
(b) If pursuant to subsection (a)(2)(C), the licenseeadvised the client to obtain expert advice as to material matters aboutwhich the licensee knows but the specifics of which are beyond theexpertise of the licensee, no cause of action for any person shall ariseagainst the licensee pertaining to such material matters.
(c) A buyer's or tenant's agent shall not disclose any confidentialinformation about the client unless disclosure is required by statute orrule and regulation or failure to disclose the information would constitutefraudulent misrepresentation. No cause of action for any person shall ariseagainst a licensee acting as a buyer's or tenant's agent for making anyrequired or permitted disclosure.
(d) (1) A buyer's or tenant's agent owes no duty or obligation to acustomer, except that the licensee shall disclose to any customer alladverse material facts actually known by the licensee, including but notlimited to material facts concerning the client's financial ability toperform the terms of the transaction.
(2) A buyer's or tenant's agent owes no duty to conduct an independentinvestigation of the client's financial condition for the benefit of thecustomer and owes no duty to independently verify the accuracy orcompleteness of statements made by the client or any qualified third party.
(3) Except as provided in subsection (d)(4), a buyer's or tenant's agentis not required to disclose to a client or customer information relating tothe physical condition of the property if a written report regarding thephysical condition of the property has been prepared by a qualified thirdparty and provided to the client or customer.
(4) A buyer's or tenant's agent shall disclose to the client or customerany facts actually known by the licensee that were omitted from orcontradict any information included in a written report described insubsection (d)(3).
(5) In performing an investigation or inspection and in making adisclosure in connection with a real estate transaction, a licensee shallexercise the degree of care expected to be exercised by a reasonablyprudent person who has the knowledge, skills and training required forlicensure as a broker or salesperson.
(e) A buyer's or tenant's agent may provide assistance to the seller orlandlord by performing ministerial acts. Performing ministerial acts forthe seller or landlord shall not be construed as violating the brokeragefirm's agency with the buyer or tenant and shall not be construed asforming an agency with the seller or landlord.
(f) A buyer's or tenant's agent may show properties in which the clientis interested to other prospective buyers or tenants without breaching anyduty or obligation to the client. This subsection is intended to allow abuyer's or tenant's agent to show competing buyers or tenants the sameproperty and to assist competing buyers or tenants in attempting topurchase or lease a particular property.
(g) A buyer or tenant may agree in writing with a buyer's or tenant'sagent that the agent may receive compensation from a seller's or landlord'sagent or from a transaction broker.
(h) A buyer's or tenant's agent shall not be liable for punitive orexemplary damages for the licensee's failure to perform any of the dutiesset forth in this section, unless such failure is shown by clear andconvincing evidence that the licensee acted toward the plaintiff withwillful conduct, wanton conduct, fraud or malice.
History: L. 1995, ch. 252, § 7; Revived, L. 1997, ch. 65, § 34;L. 1997, ch. 65, § 35; Oct. 1.