Back in 2000 the Oklahoma Relationship Act was enacted by the State. The act was put in place to protect home buyers as it allowed and defined the manner in which a real estate agent could represent a client.
But the law had one unintended consequence. It confused the hell out of everyone; consumers and real estate agents alike.
However the confusion is about to be cleared up with pending House Bill 2524. HB 2524 aims to streamline the Oklahoma Relationship Act. With a two year effort by the Oklahoma Association of Realtors and the Oklahoma Real Estate Commission the bill has made its way through the Senate and passed with 40 Ayes and 1 Nay and with with some changes. It will go back to the House where it is expected to be signed into law Governor Fallin.
What are the expected changes to the Oklahoma Broker Relationship Act?
Before we dive into the new language let’s take a look at the language that was added back in 2000. The law back then authorized two types of broker relationships, a “transaction broker” and a “single-party broker”.
A transaction broker was defined as “a broker who provides services by assisting a party in a transaction without being an advocate for the benefit of either party.” In other words their function was to act as a facilitator to help and assist both seller and buyer in closing the transaction. All without favoring one party over the other.
A single-part broker was defined as a broker who entered into a written agreement with a party in a transaction to provide services for the benefit of that party. A single-party broker represented just his client and worked very much like a traditional agent. A single-party broker could obtain permission from either part to work as a transaction broker.
Not only that but a broker could be a single-party broker to one party and a transaction broker to another.
ARE YOU CONFUSED YET?
Well if you are so were hundreds of other. Lots of confusion with both consumers and licensee about how the law really works out in the field. Most of the confusion was in the differences between single-party brokers” and “transaction brokers”, the responsibilities of each and the effectiveness of how it was conveyed to the consumer.
Introducing House Bill 2524
HB 2524 should eliminate the confusion by removing the two type of agency “single-party broker ” and “transaction broker” and replacing it with a single broker definition that states each agent will have the same duties and responsibilities regadless of the transaction.
Lisa Noon, CEO of OAR said the bill will help clarify how a licensee would perform when involved with one party or both parties in a transaction.
No longer will there be a “single-party broker” or a “transaction broker”. Everyone will be a broker with the identical duties and responsibilities. An agent can still work with one party or both and those responsibilities and duties will be outlined in the brokerage agreement between the agent and their client.
If the bill becomes law it will take effect on November 1, 2013.
To see the entire bill Click Here
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