Key Takeaways
- Connecticut recognizes buyer agency, seller agency, dual agency, and designated agency
- Agency disclosure must be provided at the first substantive contact with a consumer
- The Real Estate Agency Disclosure Notice form is mandatory in most residential transactions
- Dual agency requires written informed consent from both buyer and seller
- Designated agency allows the broker to designate agents to represent each party separately
Connecticut Agency Relationships
Connecticut law defines the types of agency relationships that real estate licensees may have with consumers and requires mandatory disclosure.
Types of Agency Relationships
Seller Agency (Listing Agent)
A seller's agent represents the seller exclusively:
| Duty | Description |
|---|---|
| Loyalty | Act in seller's best interest |
| Confidentiality | Keep seller information confidential |
| Disclosure | Disclose all material facts to seller |
| Obedience | Follow lawful instructions |
| Accounting | Account for all funds |
| Care | Exercise reasonable skill and care |
Buyer Agency
A buyer's agent represents the buyer exclusively:
| Duty | Description |
|---|---|
| Loyalty | Act in buyer's best interest |
| Confidentiality | Keep buyer information confidential |
| Disclosure | Disclose all material facts to buyer |
| Obedience | Follow lawful instructions |
| Accounting | Account for all funds |
| Care | Exercise reasonable skill and care |
Key Point: Connecticut law allows buyers to enter into written buyer agency agreements for representation.
Dual Agency
Dual agency occurs when one agent or brokerage represents both buyer and seller in the same transaction:
| Requirement | Description |
|---|---|
| Written consent | Both parties must consent in writing |
| Full disclosure | Explain limitations of dual agency |
| Neutrality | Cannot advocate for either party |
| Confidentiality limits | Cannot disclose negotiating information |
Warning: Dual agency significantly limits what an agent can do for either party. Full disclosure is essential.
Designated Agency
Connecticut allows designated agency where:
- A broker can designate one agent to represent the seller
- A broker can designate another agent to represent the buyer
- The agents act as single agents for their respective clients
- The broker remains a dual agent
Agency Disclosure Requirements
Real Estate Agency Disclosure Notice
Connecticut requires licensees to provide the Real Estate Agency Disclosure Notice to consumers:
When to Provide
| Timing | Requirement |
|---|---|
| General rule | At first substantive contact |
| Before what | Before discussing confidential information |
| Written form | Must use approved disclosure form |
Who Must Receive
The disclosure must be provided to:
- All prospective buyers
- All prospective sellers
- All parties in rental transactions
Exemptions from Disclosure
The following are generally exempt:
- Commercial transactions (over 4 units)
- Previously disclosed parties
- Licensed real estate professionals
Duties to ALL Parties
Regardless of representation, all licensees owe certain duties to all parties:
Universal Duties
| Duty | Description |
|---|---|
| Honesty | Deal honestly with all parties |
| Material facts | Disclose known material facts |
| Fair dealing | Treat all parties fairly |
| Present offers | Present all offers timely |
What is a Material Fact?
| Material Facts | Examples |
|---|---|
| Physical defects | Foundation issues, roof leaks, flooding |
| Environmental hazards | Lead paint, asbestos, mold |
| Legal issues | Zoning violations, easements, liens |
| Property condition | Systems not functioning, structural damage |
Compensation Disclosure
A licensee must disclose when:
- Receiving compensation from multiple parties
- Acting as a principal in the transaction
- Having a personal interest in the property
Key Rule: Compensation can be negotiated and does not determine agency relationship.
When must the Real Estate Agency Disclosure Notice be provided to a consumer in Connecticut?
What type of agency allows a broker to designate separate agents to represent the buyer and seller?
Which duty does a licensee owe to ALL parties in a Connecticut real estate transaction?