Key Takeaways
- Kansas recognizes four types of agency: seller's agent, buyer's agent, dual agent (disclosed), and transaction broker
- The Brokerage Relationships Disclosure form must be provided at the first substantial contact
- Kansas agents owe fiduciary duties of loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care
- A transaction broker assists both parties but does not represent either party as a fiduciary
- Written consent is required before a licensee can act as a dual agent
Kansas Agency Relationships
Agency law in Kansas is governed by the Kansas Real Estate Brokers' and Salespersons' License Act and KREC regulations. Understanding agency relationships is critical for the Kansas state exam.
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Types of Agency Relationships
Kansas recognizes four types of brokerage relationships:
| Type | Description |
|---|---|
| Seller's Agent | Represents the seller's interests exclusively |
| Buyer's Agent | Represents the buyer's interests exclusively |
| Dual Agent | Represents both buyer and seller (with consent) |
| Transaction Broker | Assists both parties but represents neither |
Single Agency
In single agency, the licensee represents only one party:
- Seller's Agent - Owes full fiduciary duties to seller
- Buyer's Agent - Owes full fiduciary duties to buyer
Transaction Broker
A transaction broker is a unique Kansas option:
| Feature | Description |
|---|---|
| Representation | Assists both parties |
| Fiduciary duty | None - no fiduciary relationship |
| Confidentiality | Still must maintain confidentiality |
| Disclosure | Must disclose known material facts |
Key Point: Transaction brokers do NOT represent either party. They facilitate the transaction while maintaining neutrality.
Fiduciary Duties
Kansas agents owe fiduciary duties to their clients (not customers):
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Obedience | Follow lawful instructions |
| Disclosure | Reveal all material facts |
| Confidentiality | Protect client's private information |
| Accounting | Account for all money and property |
| Reasonable Care | Use skill and diligence |
Brokerage Relationships Disclosure
Kansas requires disclosure of brokerage relationships through the Brokerage Relationships Disclosure form.
When to Provide Disclosure
The disclosure must be provided at first substantial contact:
| Situation | When to Provide |
|---|---|
| Listing appointment | At or before the meeting |
| Showing property | Before substantive discussion |
| Open house | When buyer shows specific interest |
| Phone/online inquiry | At first substantive contact |
What "Substantial Contact" Means
| Is Substantial | Is NOT Substantial |
|---|---|
| Discussing specific properties | Providing general market information |
| Negotiating terms | Giving directions to property |
| Making recommendations | Answering factual questions |
| Discussing client's needs | Casual conversation |
Disclosure Contents
The Brokerage Relationships Disclosure explains:
- Types of brokerage relationships available
- Duties owed in each type of relationship
- How compensation does not determine agency
- The transaction broker option
Exam Tip: The disclosure is for information only—it does not create an agency relationship. Agency is created by agreement.
Client vs. Customer
| Term | Definition | Duties Owed |
|---|---|---|
| Client | Person represented by licensee | Full fiduciary duties |
| Customer | Person NOT represented | Honesty, fairness, disclosure of known facts |
Duties to Customers
Even when not representing someone, licensees owe:
- Honest dealing
- Fair treatment
- No misrepresentation
- Disclosure of known material defects
When must a Kansas licensee provide the Brokerage Relationships Disclosure?
What is a transaction broker in Kansas?