10.13 Dual Agency Considerations (if permitted in your State)

Company policy recommends that any Associates proceed very carefully in any dual agency situation.

If the Associate does not have significant experience representing clients in a dual agency, the Company recommends allowing the Broker or Manager to appoint a senior or more experienced affiliated licensee to help you with the transaction. The Broker or Manager may ask you to represent a buyer or seller without committing the other affiliated licensees in the Company to the same agency relationship. This method allows two licensees within the Company to fully represent all parties in a given transaction without being limited by dual agency.

Here are additional practices that must take place in the event of dual agency:

• The Broker or Manager must inform in writing both the seller and buyer of the appointment of the designated Associate for the buyer and the seller. Both the seller and the buyer must consent to the appointment.

• No licensee may act as a designated Associate who has received any confidential information concerning the other party to the transaction.

The Broker or Manager must take certain measures to guarantee the protection of each client’s confidential information. Such measures may include, but not be limited to the following:

• All discussions concerning confidential information between agents and clients must be in an environment that allows for privacy. Conversation over speaker telephones or with conference room or office doors open would not be permitted.

• All documents containing confidential information should be kept in a secure place and inaccessible to other licensees.

• A system must be in place to protect the confidentiality of fax transmissions and telephone messages.

• The same office personnel or assistants may not assist agents who represent different clients in the same transaction. Different personnel should be assigned to work with the different agents in the transaction.

• If the Broker or Manager becomes aware of any compromise in the designated agency relationship, then such intentional or inadvertent disclosure of confidential information should be immediately disclosed to the client.

For additional information, reference the “Handling Clients” section of this manual for more policies and procedures regarding dual agency.