(In all cases, please refer to Buying and Selling a Home in SD - A Consumer Guide, published by the SD Real Estate Commission.)
The Real Estate Relationship Disclosure Form
The purpose of this form is to review agency types allowed under SD law, and to give people a copy of Buying and Selling a Home in SD - A Consumer Guide from the SD Real Estate Commission.
· Agency is defined on page two of the guide to mean “any relationship by which one person acts for or on behalf of a client subject to the client’s reasonable direction and control.”
· Client is defined as any person, including a buyer or seller, who has entered into any agency relationship with a licensee (real estate agent). Clients are owed fiduciary duties of obedience, loyalty, confidentiality of personal information, accounting, and reasonable care.
· Customer is any party to a real estate transaction who does not have any agency relationship with a licensee (real estate agent).
· Fiduciary is defined one who acts legally on behalf and in the best interests of another. There are certain common law duties attached to fiduciary. In real estate, if you become the "agent" of your client, you are acting legally in their best interests.
The Real Estate Relationship Disclosure form lists the types of agency allowed under SD law with a brief explanation of each type. A checkmark appears next to each type of agency offered by the real estate company providing the form. Some agents will circle the types of agency which could potentially apply to the buyer signing the form.
· This form is an educational form which does not commit or obligate the signer to anything. However, unless the signer signs a second time at the bottom of the form verifying they are not being represented, it should be accompanied by an agency agreement (a Buyer Broker Agreement) to hire a real estate company and their agent.