Why do you sign so many Agency Forms? Here’s the Answer!
December 4th, 2006 . by Mike KellyQ. I’m a listing agent confused about the agency disclosure rules. Why is the buyer’s agent asking that my seller sign an agency disclosure form (C.A.R. Form AD) when I already gave one to my seller?
A. The agency laws—found in California Civil Code Sections 2079.12 through 2079.24—can be quite confusing. First, the Agency Disclosure Form (AD) is simply an educational form. Its purpose is not to disclose to the clients who is agent for whom—that’s the function of the agency confirmation form (C.A.R. form AC-6 or the confirmation paragraph in the purchase agreement). Second, when different brokers are representing the seller and buyer, this form (AD) must be given to the seller twice during the transaction: by the listing agent to the seller when the listing contract is signed (Section 2079.14(a)) and by the selling agent to the seller when the offer to purchase is presented to the seller (Section 2079.14(b)). On the other hand, the buyer receives this “educational” form (AD) once when the buyer signs the offer to purchase the property.
