Dear Forms Committee: Do I need to disclose dual agency if I have two buyers looking for a similar property in the same area?

Under Oregon law, a buyer’s agent may show properties in which their buyer is interested to other prospective buyers without breaching an affirmative duty to the buyer (see ORS 696.810(4)).

It becomes more complicated if two buyers are interested in the same property. When an agent is representing more than one buyer of a property, the agent is a disclosed limited agent. Agents who serve as disclosed limited agents must fulfill the duties owed to their clients under ORS 696.815 and as agreed in a disclosed limited agency agreement. The duties of agents under ORS 696.815, which covers the representation of more than one party, include the obligation to disclose conflicts of interest. An agent representing both buyer and seller will inevitably disclose the dual representation, whether in marketing materials, during a conversation, or on the Final Agency Acknowledgment at the beginning of the purchase and sale agreement. However, the representation of two buyers doesn’t come up in those ways, so the agent must disclose the dual representation, and the best way to disclose it is in writing, signed by the buyer.

As a reminder, all buyers and sellers should be given the OREA Initial Agency Disclosure Pamphlet (OREF-042) upon first contact so they understand agents’ roles.

Always check with your principal broker or legal counsel to ensure that you are following any policy requirements of your brokerage.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.