Oklahoma's New Real Estate Law

This new law dramatically impacts YOU as a Home Buyer!

It's called the "Oklahoma Broker Relationships Act".   Effective November 1, 2000.
Found in Title 59, Oklahoma Statutes, Sections 858-351 - 858-363.

The new law identifies the relationship of licensees, when dealing with individuals in real estate activities, which require a license.
The two types of "Broker Relationships" under the new law are...

Transaction Broker  and  Single-Party Broker

Transaction Broker:

The new law defines a Transaction Broker relationship as a broker who provides services by assisting a party in a transaction without being an advocate for the benefit of that party.

What does this mean to YOU as a real estate Buyer?

By law, a Transaction Broker cannot be an advocate for your cause... cannot intercede on your behalf, over that of the Seller, because they can provide only "neutral assistance" to you in a real estate transaction.

By law, a Transaction Broker does not have to obey your specific directions!

You are not vicariously liable for the acts or omissions of the Transaction Broker.

By the terms of this law, a Transaction Broker doesn't have to disclose to you, that he / she is operating as a Transaction Broker, until just prior to your signing a contract to purchase property.

We believe that this time delayed disclosure is NOT a consumer friendly provision of the new law!

Why do we say that?

A Federal Trade Commission ( FTC ) study found that approximately 75% of all Homebuyers, nationwide, mistakenly believed that they were being represented by the real estate licensees showing them homes! Technically speaking, they were not!

Why the widespread misconception?

Are people just foolish?  No!  It's just natural to assume that you're being represented by the real estate licensee showing you homes!

Therefore, without disclosure ( until just prior to signing the Purchase Contract ), the above FTC statistic implies that this trap could potentially be fallen into by a majority of Oklahoma Homebuyers.  It could end up costing YOU money and / or grief.

Why would you agree to accept the assistance of a Transaction Broker, who is not your advocate, when buying a home?  As Exclusive Buyer Brokers, we GUARANTEE that we will never act as a Transaction Broker, or change to a Transaction Broker!  We only work with Buyers as a Single-Party Broker!

Single-Party Broker:

A Single-Party Broker is the only other kind of Broker relationship allowed under the new law.  There are four major differences between a Single-Party Broker and a Transaction Broker, as follows:

1. A Single-Party Broker will be an advocate for the party for whom they are providing real estate services.  They will intercede in that parties beneficial interest.
   
2. A Single-Party Broker must obey the specific directions of the party, if it doesn't involve illegal activities.
   
3. The party may be vicariously liable for the acts or omissions of a Single-Party Broker.
   
4. A written Single-Party Brokerage Agreement must be executed between licensee and Buyer.

So, how can you protect yourself ?

Insist upon the services of an Exclusive Buyer's Agent working with you as a single party broker relationship.

Don't let any licensee imply that there is little difference between the two types of Brokers!  That is simply false!  If you accept that premise, it may be to your great detriment, and it may cost you money!

Use an Exclusive Buyer's Broker - a company who does not list properties For Sale, for Sellers. The reasons why it is so important to use an Exclusive Buyer's Broker can be seen by clicking here.