Key Takeaways
- The Oklahoma Broker Relationships Act governs agency disclosure and broker duties in real estate transactions
- Brokers must describe and disclose their duties and responsibilities in writing before signing any contract
- Oklahoma allows brokers to provide brokerage services to both parties in a transaction with proper disclosure
- Mandatory duties to all parties include honesty, reasonable skill and care, and timely accounting of funds
- Confidential information must be protected unless disclosure is required by law or authorized in writing
Oklahoma Broker Relationships Act
The Oklahoma Broker Relationships Act (Title 59, Oklahoma Statutes, Sections 858-351 through 858-363) is Oklahoma's primary law governing agency disclosure and broker duties in real estate transactions.
Purpose of the Broker Relationships Act
The Act requires brokers to describe and disclose in writing their duties and responsibilities prior to a party signing a contract to sell, purchase, option, or exchange real estate.
Key Point: Written disclosure of broker duties is mandatory before any contract is signed.
When to Provide Disclosure
The broker must provide written disclosure of duties and responsibilities:
- Prior to signing any contract to sell, purchase, option, or exchange real estate
- Before any confidential information is shared
Timing Guidelines
| Situation | When to Provide |
|---|---|
| Listing presentation | Before signing listing agreement |
| Buyer inquiry | Before signing buyer representation agreement |
| Showing property | Before substantive negotiations |
| Contract presentation | Before signing purchase contract |
Types of Broker Relationships
Oklahoma recognizes several broker relationship structures:
Single-Party Representation
A broker represents only one party in the transaction:
| Relationship | Broker Represents |
|---|---|
| Seller's broker | Seller only |
| Buyer's broker | Buyer only |
Services to Both Parties
Oklahoma law allows a broker to provide brokerage services to both parties in the same transaction:
- Must provide written notice to both buyer and seller
- Commonly occurs when listing firm's buyer wants to purchase listing
- Broker must remain neutral and cannot advocate for either party's interests over the other
Mandatory Duties to ALL Parties
The Oklahoma Broker Relationships Act establishes duties that cannot be waived and apply to all parties:
Universal Duties
| Duty | Description |
|---|---|
| Honesty | Treat all parties with honesty |
| Skill and care | Exercise reasonable skill and care |
| Present offers | Receive and present all written offers and counteroffers timely |
| Reduce to writing | Reduce offers/counteroffers to written form upon request |
| Account for funds | Timely account for all money and property received |
| Property disclosures | Disclose information required by Residential Property Condition Disclosure Act |
| Comply with law | Follow Oklahoma Real Estate License Code and all applicable rules |
| Confidentiality | Keep confidential information confidential |
Confidential Information
The following is considered confidential information that must be protected:
- That a party is willing to pay more or accept less than offered
- That a party is willing to agree to different financing terms
- The motivating factors for purchasing, selling, or leasing
- Any information specifically designated as confidential by the party
Confidentiality Exceptions
Confidential information may be disclosed if:
- Written consent is granted by the party
- Disclosure is required by law
- Information becomes public knowledge
Key Rule: A broker must never disclose a party's bottom-line price or motivation without written consent.
Additional Duties to Represented Parties
Beyond universal duties, brokers owe additional duties to parties they represent:
| Additional Duty | Description |
|---|---|
| Cost disclosure | Inform in writing about expected costs and brokerage fees |
| Keep informed | Keep the party informed regarding the transaction |
| Compensation disclosure | Disclose compensation details before contract effective date |
Compensation Disclosure (2025 Update)
Brokers must disclose:
- Compensation and fees assessed on each transaction
- Time frame for which compensation agreement is valid (not to exceed 1 year)
- If no time frame specified, agreement defaults to 60 days
When must a broker provide written disclosure of duties under the Oklahoma Broker Relationships Act?
Which of the following is considered confidential information under Oklahoma law?