I promise It's a good thing!
Download NH's 👉 Brokerage Relationship Disclosure Form
The New Hampshire Brokerage Relationship Disclosure Form
exists as a tool for consumer awareness.
Presented 'Upon first meeting' between agents and non-industry professionals (potential clients)
NH Section Rea 701.02
A licensee shall disclose to a prospective buyer or tenant any material physical, a regulatory, mechanical, or on-site environmental condition affecting the subject property of which the licensee has actual knowledge. Such disclosure shall occur any time prior to the time the buyer or tenant makes a written offer to purchase or lease the subject property. This shall not create an affirmative obligation on the part of the licensee to investigate material defects.
N.H. Code Admin. R. Rea 701.02
In English -
A "Right to Know" form to help "non-real estate professionals" understand their rights and expectations when working with real-real estate professionals in the industry.
This form is required by the state of NH as a response to the need for transparency and consumer awareness
The Brokerage Relationship Disclosure Form demonstrates many
types of relationships:
between agents and customers
between agents and their signed clients
between customers and transactions
Wait, who is a customer, and who is a client?
EXACTLY!
...I have something you can read.
Most states require some version of this; it is your "Right to Know."
This is also a great way to start thinking of questions - Here's one
WHAT IS IT?
It's a form, a New Hampshire required document.
To be presented to a customer
and to be acknowledged in the form of a signature by the recipient
(you can also 'decline to sign')
"to be presented at the first meeting" by an agent to you
--- a customer asking for information about a home or their services.
What it is NOT: The NH Brokerage Relationship Disclosure form is NOT a contract.
Yes, you sign it - but it is not a contract.
The agent isn't sneaky, and you don't owe them anything for the meeting.
The agent needs to present either in person or via electronic signature - typically you will see forms from Dotloop.
Don't feel like signing it? No problem. The agent can simply initial and check a box that confirms they presented it - and keep it lovingly as a keepsake for 3+ years, In compliance with NH State Law.
REAL LIFE EXAMPLES
You are looking at homes to purchase and have no represented agent.
After browsing the internet for listings. You make plans to meet the agent listing a home for a showing. This listing agent represents the owners of the home.
THE LISTING AGENT
You and the listing agent have a lovely chat about the colonial charm of the home,
the fact that you both have the same hairdresser (what..that is crazy), and you both vacation in Maine. The listing agent hands you this form to read:
✋ [Pause] In this situation, you are a CUSTOMER to the agent meeting you. You represent yourself. The listing agent works for their CLIENT, the homeowners.
Should you decide to buy this home, the agent should be transparent about the next steps.
Who do YOU work with?
If you choose to work with this agent, you may hear terms like
"Disclosed dual agency"
This can be an excellent option for purchasing or selling a home.
Ask your agent to explain these terms:
Dual Agency
Designated Agency
Fiduciary Duties
A fiduciary is a duty to know but not reveal specific information. Sometimes even a client's name is confidential. Revealing information is always approved and granted by the client to the agent.
The selling agent will also respect and not ask for personal or confidential information about a customer or someone they do not represent.
If you are unrepresented the listing agent should:
(1) giving you this form
(2) politely asking you not to reveal personal information about yourself,
that might be of use to the homeowners in negotiations.
Things not to say:
"You bought $4 GameStop stock"
"Your inheritance is available on Friday."
What is the listing agent required to tell you?
An agent must reveal certain known reasons for any physical defects on the property.
A material defect for example:
The house was tested and is clearly having a "mold problem."
Especially under the roof, and there are some spots on the ceiling.
The house is pretty smelly -- and the owner never addressed it.
Now you are touring the house, and you mention you smell it.
You also ask about the stains on the ceiling.
They have to tell you why the house smells.
__________________________________________________________________________________
Frequently Asked Random Questions:
Can I ask if a house is haunted?
Yes, You can ask if a house is haunted.
Technically, the agent listing the home has to reveal knowledge if they have been told about it. (More on stigmatized properties later.)
__________________________________________________________________________________
A Word on Disclosed Dual Agency RSA 331 -A:25-d
"Disclosed dual agent'' means a licensee acting for more than one party whose interests may differ in a transaction with the knowledge and written consent of all parties for whom the licensee acts.
In Dual Agency - a licensed agency (Brokerage) has a written agency agreement with both the seller and the buyer in the same transaction with all parties' knowledge and written consent. More Info Below
Agents have a Fiduciary Duty to their clients. If both sides are clients, they can operate the transaction successfully in Dual Agency - make sure you know what that means.
Download NH's 👉 Brokerage Relationship Disclosure Form
If you're new to the real estate world, you may be wondering how the relationship between a broker and a buyer or a seller works? The Brokerage Relationship Disclosure Form delineates the types of representation available to you, the consumer, whether you are a buyer or a seller.