Oklahoma's Real Estate Law

This law dramatically impacts YOU as a Home Buyer!

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

This 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 this law are...

Transaction Broker  and  Single-Party Broker

Transaction Broker:

The 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. 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.

A Broker may enter into a written Brokerage Agreement to provide services as either a Single-Party Broker or a Transaction Broker. If a Broker does not enter into a written brokerage agreement with a Party, the Broker shall perform services only as a Transaction Broker.

Prior to the signing by a Party of a contract to purchase, lease, option or exchange real estate, a Broker who is performing services as a Transaction Broker without a written brokerage agreement shall describe and disclose in writing the Broker's role to the Party.

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

This time delayed disclosure is NOT a consumer friendly provision to you as a buyer!

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?

It's just natural to assume that you're being represented by the real estate licensee showing you homes!

Therefore, without written disclosure ( until just prior to signing the Purchase Contract ), the above FTC scenario could potentially be experienced by 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 from a Single Party Broker to a Transaction Broker while working with a homebuyer!  We provide services for the benefit of buyers only, working as a Single-Party Broker!

Single-Party Broker:

A Single-Party Broker is the only other Broker relationship allowed under Oklahoma Real Estate law.  There are major differences between a Single-Party Broker and a Transaction Broker.

1. A Single-Party Broker will work for the benefit of the party for whom they are providing real estate services. 
   
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 Agent working with you in a Single Party Broker Relationship! It need not cost you additional money to do so. We are paid from a split of the commission that the seller pays to the real estate agent that the seller hired to sell their property. The Oklahoma Real Estate law also states that the payment to the broker is not determinative of relationship.
"The payment or promise of payment or compensation by a party to a broker does not determine what relationship, if any, has been established between the broker and a party to the transaction."

Don't let anyone imply that there is little difference between the two types of Broker relationships!  That is simply false!  A licensee providing services as a transaction broker, at best, can only provide services less than full representation. If you accept that premise, it may be to your great detriment, and it may cost you money!

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