Commercial agency and brokerage disclosure addendum - KCRAR 2025

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The brokerage disclosure form outlines each agents role in the transaction. While the brokerage disclosure document is a form and not a contract, each is geared to the brokerages role in the transaction (sellers broker, buyers broker, etc.), and each states agreement is slightly different.
A Broker who provides Brokerage Services to one or both parties shall describe and disclose in writing the Brokers duties and responsibilities prior to the party or parties signing a contract to sell, purchase, option, or exchange real estate.
To prevent implied agency, it is vital that all real estate professionals disclose agency relationships to all potential customers. The agent must give oral disclosure of agency representation upon initial contact with a party and written disclosure is required upon substantive discussion.
In every real estate sales transaction, a broker working directly with a prospective buyer as a sellers agent or subagent shall disclose in writing to the prospective buyer at the first substantial contact with the prospective buyer that the broker represents the interests of the seller.
If no designated agent was named in the agency agreements with the buyer and the seller, and this addendum is signed by Buyer and Seller, Broker and the brokers affiliated licensees shall act as a Transaction Broker in a contemplated real estate transaction between Buyer and Seller.
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Typically, this disclosure must be made when they make their first substantive contact, but must certainly be made before either party signs an offer for a purchase. The disclosure must be given whether the licensee represents the buyer, the seller, both parties, or neither party.
A listing broker must disclose their brokerage relationship with the seller to an unrepresented buyer before showing them a house to ensure transparency and protect both parties interests. This disclosure is essential to prevent any misunderstandings about whom the broker legally represents in the transaction.
The landlords agent must disclose to potential tenants all adverse material facts actually known by the landlords agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the landlord.

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