Issues Concerning 
Oklahoma Real Estate Rules

Selected Issues Described by: 
Oklahoma Brokers Relationship Act

Title 59, Oklahoma Statutes, Sections 858-351 through 858-363
Amended as of June 6, 2005

Agency:

In Oklahoma, the Oklahoma Real Estate code has replaced common law agency in the real estate business.  Under Oklahoma Law, every real estate licensee (or associate) is assumed to be operating in a "transactional brokerage" relationship, in which the associate represents the "transaction" and not any specific party.  Transactional Brokerage is very similar to the concept of dual agency in which the broker/associate licensee can represent both parties in a transactional status.  With a written agreement, the relationship may become that of a Single-Party Brokerage arrangement. 

Real Estate Licensees from the same brokerage company can not represent both parties in a transaction as a single-party broker.  However, a licensee can represent one party as a single-party broker and the other as a transaction broker, or represent both sides as a transaction broker, providing the relationships are disclosed to both parties.

Single-Party Brokerage

"A 'Single-Party Broker' means a broker who has entered into a written brokerage agreement with a party in a transaction to provide services for the benefit of that party"  (OS 59 § 858-351 3) -- in other works, the focus of a Single-Party Broker is to work for the benefit of the client.

Transaction Brokerage

"A 'Transaction Broker' means a broker who provides services by assisting a party in a transaction without being an advocate for the benefit of that party" (OS 59 § 858-351 5) -- in other words, the focus of a Transaction Broker is to complete the transaction. 

Additional Duties and Responsibilities for Single-Party Brokerage:

  1. A broker shall enter into a written brokerage agreement prior to providing services as a single-party broker

  2. To keep the party for whom the single-party broker is performing services informed regarding the transaction,

  3. To exercise reasonable skill and care including:

    1. performing all brokerage activities for the benefit of the client, unless prohibited by law

    2. obeying the specific directions of the client, unless prohibited by law, rules, or contrary to terms of the written contract  

 (OS 59 § 858-354)

Under Single-Party Brokerage, the client of the Real Estate Licensee may be vicariously liable for the acts or omissions of the broker.

 Duties and Responsibilities common to both Transaction and Single-Party Brokerage:

  1. To treat all parties with honesty and exercise reasonable skill and care;

  2. To be available to: 

    1. receive all written offers and counter offers,

    2. reduce offers or counteroffers to a written form upon request of any party to a transaction, and

    3. present timely such written offers and counteroffers,

  3. To inform in writing the party for whom the broker is providing services when an offer is made that the party will be expected to pay certain closing costs, brokerage service costs and approximate amount of such costs

  4. To account for all money and property received by the broker,

  5. To keep the confidential information received from a party confidential, as required by statute, including:

    1. That a party is willing to pay more or accept less that what is being offered

    2. That a party is willing to agree to financing terms that are different from those offered

    3. The motivating factors of the party purchasing, selling, leasing, optioning, or exchanging the property

  6. To disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act

  7. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes and rules

(OS 59 § 858-353, 858-354) as amended June 6, 2005

Selected Issues Described by:
Oklahoma Residential Property Condition Disclosure Act

Title 60, Oklahoma Statues Section 831 through 839
Effective July 1, 1995

The Oklahoma Residential Property Condition Disclosure Act applied to all single family and duplex structures.  In general, the owner of a previously occupied residential property (improved with not less than one nor more than two dwelling units), selling the property to an unrelated party, shall deliver to the the purchaser of the property a written property disclaimer statement, a form established by the Oklahoma Real Estate Commission, which states that either:

  1. The owner of the property has not occupied the property and has no knowledge of any defect (form), or

  2. A written property condition disclosure form that discloses all known defects (but is not a warranty statement)   

Who  must complete a Property Condition Disclosure Form?

A Property Condition Disclosure Form must be completed by a seller of residential property who is either

  1. represented by a real estate licensee, or

  2. not represented by a real estate licensee but received a written request from the purchaser to deliver a disclaimer statement

An amendment to the Property Condition Disclosure Form must be delivered to the purchaser if a new defect is discovered before closing. 

Real Estate Licensee Duty:

A Real Estate Licensee has the duty to disclose to the purchaser any defects in the property actually known to the licensee which are not included in either the disclosure statement or any amendment

Remedies:

The purchaser may recover in a civil action actual damages including cost of repairing the defect, court costs and attorney fees.  Action must be brought under this act within two years after date of transfer of real property.  

 

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