WILLIAM DONALD SCHAEFER, Governor Ch. 575

OCCURS FIRST, TO A PROSPECTIVE BUYER OR LESSEE, A LICENSEE UNDER
THIS TITLE WHO REPRESENTS THE SELLER OR LESSOR OF THE REAL
PROPERTY SHALL DISCLOSE TO THE PROSPECTIVE BUYER OR LESSEE THAT
THE LICENSEE REPRESENTS THE SELLER OR LESSOR.

(B)(1) THE DISCLOSURE STATEMENT REQUIRED IN SUBSECTION (A)
OF THIS SECTION SHALL BE IN WRITING AND SHALL BE ACKNOWLEDGED IN
WRITING BY THE PROSPECTIVE BUYER OR LESSEE.

(2) THE DISCLOSURE STATEMENT SHALL INDICATE THAT:

(I) THE LICENSEE HAS A FIDUCIARY DUTY TO

REPRESENT THE BEST INTERESTS OF THE SELLER OR LESSOR; AND

(II) THE LICENSEE WILL RECEIVE FROM THE SELLER
OR LESSOR A COMMISSION THAT IS DIRECTLY PROPORTIONAL TO THE PRICE
PAID BY A BUYER OR LESSEE AND AT WHAT PERCENTAGE THE COMMISSION
IS EARNED.

(A)  (1) A LICENSED BROKER OR SALES PERSON SHALL DISCLOSE IN
WRITING THAT THE LICENSEE REPRESENTS THE SELLER OR LESSOR,
WHETHER OR NOT THE LICENSEE IS THE LISTING AGENT OR BROKER FOR
THE PROPERTY.

(2) THE DISCLOSURE SHALL OCCUR DURING THE INITIAL
CONTACT WITH THE BUYER OR LESSEE OR WITHIN A REASONABLE TIME
AFTER THE INITIAL CONTACT.

(2) THE DISCLOSURE SHALL OCCUR WITHIN A REASONABLE
TIME AFTER THE INITIAL FACE-TO-FACE CONTACT WITH THE BUYER OR
LESSEE, BUT SHALL BE PRIOR TO THE SIGNING OF THE INITIAL
CONTRACT.

(B)  THE PROVISIONS OF THIS SECTION APPLY ONLY TO
RESIDENTIAL REAL ESTATE TRANSACTIONS OF 1, 2, 3, OR 4
SINGLE-FAMILY UNITS.

(C)  THIS SECTION DOES NOT APPLY IF A LICENSED BROKER HAS
ENTERED INTO A WRITTEN AGREEMENT FOR CONSIDERATION TO REPRESENT A
PROSPECTIVE BUYER OR LESSEE IN THE ACQUISITION OF REAL PROPERTY
FOR SALE OR FOR LEASE.

(D)  THE COMMISSION MAY ADOPT REGULATIONS TO IMPLEMENT THE
PROVISIONS OF THIS SECTION.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect October 1, 1989.

Approved May 25, 1989.

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