2.1 Kansas Agency Relationships
Key Takeaways
- Kansas BRRETA defines three consumer-facing relationships — seller's/landlord's agent, buyer's/tenant's agent, and transaction broker — plus designated agency as a method of delivering single agency inside one firm
- Transaction broker is the DEFAULT: absent a written buyer- or seller-agency agreement, a Kansas licensee working with a consumer is a transaction broker by operation of law
- The Real Estate Brokerage Relationships brochure must be given at the first practical opportunity, before substantive discussion of a property or the consumer's needs
- An agent owes the six fiduciary duties (OLD-CAR): Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care
- A transaction broker is NOT an agent and owes no fiduciary duties; it assists the transaction neutrally
- Whoever does NOT pay the commission has no bearing on who the agent represents; agency is created by agreement, not by compensation
The Statutory Source
Kansas agency law is governed by the Brokerage Relationships in Real Estate Transactions Act (BRRETA), codified at K.S.A. 58-30,101 through 58-30,113, which took effect October 1, 1997, and by Kansas Real Estate Commission (KREC) regulations in K.A.R. Article 86-3. BRRETA is the single most heavily tested topic on the Kansas state portion. Memorize that Kansas defines relationships by statute, not by general common-law agency, so always answer from the BRRETA framework.
Critical Kansas distinction: BRRETA gives consumers three brokerage relationships — seller's agent, buyer's agent, and transaction broker — and designated agency is the device that lets a firm deliver single agency to both sides of an in-house deal. Common (disclosed) dual agency, where one licensee fully represents both buyer and seller at once, is illegal in Kansas. If an exam option says "dual agent," it is almost always the wrong answer for the relationship Kansas allows.
Transaction Broker Is the Default
The single most-missed Kansas fact: transaction broker is the default relationship. Seller agency and buyer agency each require a written agreement (a listing agreement or a written buyer-agency agreement). Absent such a writing, a licensee working with a consumer is a transaction broker by operation of law — not a seller's or buyer's agent. So when a question describes a licensee helping a buyer with no written buyer-agency agreement in place, the correct relationship is transaction broker, and the heightened fiduciary duties do not apply.
The Three Brokerage Relationships
| Relationship | Who is represented | Fiduciary duties owed |
|---|---|---|
| Seller's / Landlord's agent | Seller or landlord only | Full duties to seller/landlord |
| Buyer's / Tenant's agent | Buyer or tenant only | Full duties to buyer/tenant |
| Transaction broker (DEFAULT) | NEITHER party (no agency) | No fiduciary duties; assists both |
Seller's and Buyer's Agents (Single Agency)
A single agent represents one side. A listing creates seller agency; a written buyer-agency agreement creates buyer agency. Both require a writing — without one, the relationship defaults to transaction broker. Under BRRETA, when a brokerage takes a listing, all licensees in the firm are seller's agents unless the firm appoints a designated agent to the client. The other side in the deal is a customer, owed honesty and disclosure of adverse material facts but no fiduciary loyalty.
Transaction Broker
The transaction broker is the workhorse of Kansas practice. It is expressly not an agency relationship (K.S.A. 58-30,113). The transaction broker assists the buyer and seller in reaching an agreement but advocates for neither.
| Feature | Transaction broker |
|---|---|
| Agency? | No — statutory non-agency |
| Advocacy | None for either side |
| Confidentiality | Must keep confidential the price either party will accept/pay and motivation, unless authorized |
| Disclosure | Must disclose known adverse material facts about the property |
The Six Fiduciary Duties (OLD-CAR)
When a licensee acts as a seller's or buyer's agent, the firm owes full fiduciary duties to that client (not to a customer). Use the mnemonic OLD-CAR:
| Duty | What it requires | Common Kansas exam trap |
|---|---|---|
| Obedience | Follow the client's lawful instructions | Must refuse illegal directions (e.g., steering, hiding defects) |
| Loyalty | Put the client's interest above the agent's own | Cannot buy the client's listing without disclosure and consent |
| Disclosure | Tell the client all material facts the agent knows | Includes the agent's relationship to the other side |
| Confidentiality | Protect the client's private information indefinitely | Survives closing and termination of the relationship |
| Accounting | Account for all funds and documents | Earnest money goes to the broker's trust account, not personal funds |
| Reasonable care | Use skill and diligence a competent agent would | Recommend inspections; do not give legal/tax advice |
Worked Scenario
A seller's agent learns the seller is divorcing and "must sell fast." A buyer asks, "Why are they selling?" Under confidentiality and loyalty, the agent cannot reveal the seller's motivation, because doing so would weaken the seller's negotiating position. But if the agent knows the basement floods every spring, the agent must disclose that adverse material fact to the buyer-customer, because honesty about property condition is owed to everyone.
The Brokerage Relationships Brochure
BRRETA requires that the KREC-approved "Real Estate Brokerage Relationships" brochure be furnished to a prospective buyer or seller at the first practical opportunity.
| Trigger | When the brochure is due |
|---|---|
| Listing appointment | At or before the appointment |
| Showing a property | Before substantive discussion of the property |
| Open house | When the visitor moves past casual browsing |
| Phone/online inquiry | At the first substantive contact |
Exam Tip: The brochure is informational only — it does NOT create any relationship. A relationship arises only from a written agreement. The actual relationship between every licensee and the parties must also be stated in the sale contract itself.
Client vs. Customer
| Term | Definition | Duties owed |
|---|---|---|
| Client | Person the firm represents under agreement | Full OLD-CAR fiduciary duties |
| Customer | Person NOT represented | Honesty, fair dealing, disclosure of known adverse material facts |
Note that compensation does not determine agency. A seller may pay the buyer's agent's commission, yet that licensee still owes fiduciary duties to the buyer-client, not the paying seller.
How a Relationship Is Created and Terminated
A brokerage relationship in Kansas is created by a written agreement — a listing agreement for seller agency, a buyer agency agreement for buyer agency, or a transaction-broker agreement/addendum. The relationship is not created by handing over the brochure, by showing a house, or by who pays the fee.
| Event | Effect on the relationship |
|---|---|
| Listing or buyer agreement signed | Agency begins; OLD-CAR duties attach |
| Transaction-broker agreement signed | Non-agency assistance begins |
| Expiration date reached | Relationship ends automatically |
| Mutual rescission | Both parties release each other |
| Closing/performance | Purpose accomplished; relationship ends |
Even after the relationship ends, two duties survive: the duty of confidentiality (the client's secrets stay protected) and the duty of accounting (the broker must still reconcile any trust funds). This survival rule is frequently tested.
Worked example: A listing expires unsold. Six months later the former seller's agent represents a buyer who wants that same house, now relisted with another firm. The agent may represent the buyer, but cannot use the prior seller's confidential bottom-line price learned during the old listing. Confidentiality does not expire when the listing does.
When must a Kansas licensee provide the Real Estate Brokerage Relationships brochure?
How many brokerage relationships does Kansas BRRETA recognize, and which is a non-agency relationship?