Key Takeaways
- Oregon recognizes seller agency, buyer agency, and disclosed limited agency (dual agency)
- The Initial Agency Disclosure Pamphlet must be provided at first contact with any consumer
- Disclosed limited agency requires written consent from both parties before proceeding
- Licensees owe fiduciary duties to clients and fair dealing duties to all parties
- Oregon law requires disclosure of the licensee's agency relationship before substantive discussions
Oregon Agency Relationships
Oregon law defines the types of agency relationships that real estate licensees may have with consumers under ORS Chapter 696.
Types of Agency Relationships
Seller Agency
A seller's agent represents only the seller in a transaction:
| Duty | Description |
|---|---|
| Loyalty | Undivided loyalty to seller's interests |
| Confidentiality | Keep seller's information confidential |
| Disclosure | Inform seller of all material facts |
| Obedience | Follow seller's lawful instructions |
| Accounting | Account for all funds and documents |
| Care | Exercise reasonable skill and care |
Buyer Agency
A buyer's agent represents only the buyer in a transaction:
| Duty | Description |
|---|---|
| Loyalty | Undivided loyalty to buyer's interests |
| Confidentiality | Keep buyer's information confidential |
| Disclosure | Inform buyer of all material facts |
| Obedience | Follow buyer's lawful instructions |
| Accounting | Account for all funds and documents |
| Care | Exercise reasonable skill and care |
Disclosed Limited Agency (Dual Agency)
Disclosed limited agency occurs when a licensee or brokerage represents both buyer and seller in the same transaction.
| Requirement | Description |
|---|---|
| Written consent | Both parties must consent in writing |
| Full disclosure | Must explain limitations on representation |
| Neutrality | Cannot advocate for one party over the other |
| Confidentiality limits | Cannot share confidential information between parties |
Warning: In disclosed limited agency, the licensee cannot fully advocate for either party. Both parties must understand and consent to these limitations.
Duties to All Parties
Oregon law imposes certain duties on all licensees to all parties in a real estate transaction, regardless of representation:
Universal Duties
| Duty | Description |
|---|---|
| Honesty | Deal honestly and in good faith |
| Material facts | Disclose material facts known to the licensee |
| Fair dealing | Treat all parties fairly |
| Competence | Exercise reasonable skill and care |
| Timely presentation | Present all offers and communications promptly |
What Must Be Disclosed to All Parties
- Known material defects in the property
- Information that could affect the transaction
- Any conflicts of interest
- The licensee's agency relationship
Agency Relationship Establishment
Agency relationships in Oregon are established by:
| Method | Description |
|---|---|
| Written agreement | Listing agreement, buyer representation agreement |
| Conduct | Actions that create implied agency |
| Ratification | After-the-fact approval of agent's actions |
Best Practice: Always establish agency relationships in writing to avoid misunderstandings.
Termination of Agency
Agency relationships can be terminated by:
| Method | Description |
|---|---|
| Performance | Transaction closes |
| Expiration | Agreement term ends |
| Mutual agreement | Both parties agree to end |
| Revocation | Principal withdraws authority |
| Renunciation | Agent gives up authority |
| Death or incapacity | Of either party |
What type of agency exists when an Oregon licensee represents both the buyer and seller in the same transaction?
Which duty does an Oregon licensee owe to ALL parties in a transaction?