Key Takeaways
- New Hampshire requires licensees to provide a Brokerage Relationship Disclosure Form to all consumers
- The disclosure must be provided at the first personal meeting to discuss a specific property or the buyer/tenant needs
- New Hampshire recognizes seller agents, buyer agents, and disclosed dual agents
- Receipt of the Brokerage Relationship Disclosure is required by the NH Real Estate Commission (Rea 701.01)
- A disclosed dual agent cannot advocate on behalf of one client over another
Brokerage Relationship Disclosure
New Hampshire requires all real estate licensees to provide a Brokerage Relationship Disclosure Form to consumers, as mandated by the NH Real Estate Commission under Rea 701.01.
Purpose of the Disclosure
The Brokerage Relationship Disclosure Form:
- Informs consumers about the types of brokerage relationships available
- Explains the duties and obligations of each relationship type
- Ensures consumers understand who the licensee represents
- Documents that the disclosure was provided
Key Point: Receipt of this disclosure is required by the New Hampshire Real Estate Commission.
When to Provide the Disclosure
The Brokerage Relationship Disclosure Form must be provided:
- At the first personal meeting to discuss a specific property
- Before discussing the buyer's or tenant's specific needs
- Prior to any confidential information being shared
Timing Guidelines
| Situation | When to Provide |
|---|---|
| Listing presentation | At first meeting with seller |
| Buyer inquiry | Before discussing needs or finances |
| Open house | Before substantive conversation |
| Property showing | At first personal meeting |
Types of Brokerage Relationships
New Hampshire recognizes three types of brokerage relationships:
1. Seller Agent
A seller agent is a licensee who acts on behalf of a seller or landlord:
| Duty | Description |
|---|---|
| Client | Seller or landlord |
| Obligation | Represent seller's best interests |
| Loyalty | Undivided loyalty to seller |
2. Buyer Agent
A buyer agent is a licensee who acts on behalf of a buyer or tenant:
| Duty | Description |
|---|---|
| Client | Buyer or tenant |
| Obligation | Represent buyer's best interests |
| Loyalty | Undivided loyalty to buyer |
3. Disclosed Dual Agent
A disclosed dual agent acts for both seller/landlord and buyer/tenant in the same transaction:
| Requirement | Description |
|---|---|
| Knowledge | All parties must know of dual agency |
| Written consent | Both parties must consent in writing |
| Neutrality | Cannot advocate for one party over another |
Dual Agency Requirements
Written Consent Required
Dual agency requires written consent from both parties. The licensee must:
- Fully disclose the dual agency relationship
- Obtain written consent from both buyer/tenant AND seller/landlord
- Explain the limitations of dual agency
Limitations of Dual Agency
| What a Dual Agent CAN Do | What a Dual Agent CANNOT Do |
|---|---|
| Treat both parties fairly | Advocate for one party over another |
| Maintain confidentiality equally | Disclose confidential information |
| Present all offers | Advise on price or terms to accept |
| Facilitate the transaction | Negotiate on behalf of one party |
Warning: A disclosed dual agent cannot advocate on behalf of one client over another. This significantly limits what the agent can do for either party.
Designated Agency
New Hampshire also allows designated agency, where:
- The principal broker designates different licensees within the brokerage
- One licensee represents the buyer
- Another licensee represents the seller
- Each acts as a single agent for their respective client
Consumer Rights
When receiving the Brokerage Relationship Disclosure, consumers should:
| Action | Purpose |
|---|---|
| Read carefully | Understand relationship options |
| Ask questions | Clarify any confusing points |
| Choose relationship | Select the type that best serves their interests |
| Keep copy | Maintain for records |
Company Policy
Each brokerage must establish and maintain a company policy regarding:
- Types of agency relationships offered
- Procedures for dual agency situations
- How designated agency is handled
- Training requirements for licensees
When must the Brokerage Relationship Disclosure Form be provided to a consumer in New Hampshire?
What type of agency exists when one licensee represents both the buyer and seller with written consent from both parties?
What is the primary limitation of a disclosed dual agent in New Hampshire?