58-30,113. Transaction broker; obligations of; disclosure of information.
58-30,113
58-30,113. Transaction broker; obligations of;disclosure ofinformation.(a) A broker engaged as a transaction brokershall not act as an agent for either party.
(b) A transaction broker shall have the followingobligations and responsibilities:
(1) To perform the terms of any written or oral agreementmade with any party to the transaction;
(2) to exercise reasonable skill and care as a transactionbroker, including, but not limited to:
(A) Presenting all offers and counteroffers in a timelymanner, even when the property is subject to a contract of sale;
(B) advising the parties regarding the transaction andsuggesting that such parties obtain expert advice as to materialmatters about which the transaction broker knows but thespecifics of which are beyond the expertise of the licensee;
(C) accounting in a timely manner for all money and propertyreceived;
(D) keeping the parties fully informed regarding thetransaction;
(E) assisting the parties in complying with the terms andconditions of any contract including closing the transaction;
(F) disclosing to all prospective buyers or tenants alladverse material facts actually known by the transaction broker,including but not limited to:
(i) Any environmental hazards affecting the property whichare required by law to be disclosed;
(ii) the physical condition of the property;
(iii) any material defects in the property;
(iv) any material defects in the title to the property; or
(v) any material limitation on the seller's or landlord'sability to perform under the terms of the contract; and
(G) disclosing to any prospective seller or landlord alladverse material facts actually known by the transaction broker,including but not limited to material facts concerning thebuyer's or tenant's financial ability to perform the terms of thetransaction;
(3) comply with all requirements of this act and rules andregulations adopted hereunder; and
(4) comply with any applicable federal, state and locallaws, rules and regulations and ordinances, including fairhousing and civil rights and rules and regulations.
(c) Except as provided in subsection (d), the transactionbroker is not required to disclose to any party to thetransaction information relating to the physical condition of theproperty if a written report regarding the physical condition ofthe property has been prepared by a qualified third party andprovided to the party.
(d) A transaction broker shall disclose to the party anyfacts actually known by the transaction broker that were omittedfrom or contradict any information included in a written reportdescribed in subsection (c).
(e) If pursuant to subsection (b)(2)(B), the transactionbroker advised the parties to obtain expert advice as to materialmatters about which the transaction broker knows but thespecifics of which are beyond the expertise of the transactionbroker, no cause of action for any person shall arise against thetransaction broker pertaining to such material matters.
(f) In any transaction regarding the sale or lease of real estate other thancommercial property or residential property of more than four units, thefollowing information shall not be disclosed by atransaction broker without the consent of all parties:
(1) That a buyer or tenant is willing to pay more than thepurchase price or lease rate offered for the property;
(2) that a seller or landlord is willing to accept less thanthe asking price or lease rate for the property;
(3) what the motivating factors are for any party buying,selling, or leasing the property;
(4) that a seller, buyer, landlord or tenant will agree tofinancing terms other than those offered; or
(5) any information or personal confidences about a party tothe transaction which might place the other party at an advantageover the party unless the disclosure is required by law orfailure to disclose such information would constitute fraudulentmisrepresentation.
(g) (1) Except as provided in subsection (g)(2), in any transactionregardingthe sale or lease of commercial property or residential property of more thanfour units, the following information may be disclosed by a transaction brokerunless prohibited by the parties:
(A) That a buyer or tenant is willing to pay more than the purchase price orlease rate offered for the property;
(B) that a seller or landlord is willing to accept less than the askingpriceor lease rate for the property;
(C) what the motivating factors are for any party buying, selling orleasing the property; or
(D) that a seller, buyer, landlord or tenant will agree to financing termsother than those offered.
(2) Any information or personal confidences about a party to the transactionwhich might place the other party at an advantage over the party shall not bedisclosed unless the disclosure is required by law or failure to disclose suchinformation would constitute fraudulent misrepresentation.
(h) A transaction broker has no duty to conduct anindependent inspection of the property for the benefit of anyparty to the transaction and has no duty to independently verifythe accuracy or completeness of statements made by the seller,landlord, buyer, tenant or qualified third party inspectors.
(i) A transaction broker has no duty to conduct anindependent investigation of the buyer's or tenant's financialcondition or to verify the accuracy or completeness of anystatement made by the buyer or tenant.
(j) A transaction broker may do the following withoutbreaching any obligation or responsibility:
(1) Show alternative properties not owned by the seller orlandlord to a prospective buyer or tenant;
(2) list competing properties for sale or lease;
(3) show properties in which the buyer or tenant isinterested to other prospective buyers or tenants; and
(4) serve as a single agent or subagent for the same or fordifferent parties in other real estate transactions.
(k) Information known to a transaction broker shall not beimputed to any party to the transaction or to any licensee withinthe brokerage firm engaged as a transaction broker.
(l) A transaction broker may cooperate with other brokers orcooperate and pay compensation to other brokers but shall notengage any subagents.
History: L. 1997, ch. 65, § 1;L. 2006, ch. 159, § 4; July 1.