Agency Disclosure Laws Largely Ignored

If you haven't read the Realty Times article Agency Disclosure Worse Than Ever, you need to do so. It is a real eye-opener.

Here are some excerpts:

". . .NAR found that only 30 percent of homebuyers were disclosed at first meeting; 28 percent when the contract was written; 22 percent weren't disclosed at all, and one in five were uncertain if they were disclosed at all. A shockingly low number of first-time buyers were disclosed at first meeting -- only 23 percent. . ."

Comments Laurie Janik, general counsel for the NAR, "Almost all states require disclosure of agency relationships. These statistics are truly disappointing to me. I would have thought the numbers on compliance with agency disclosures would be increasing year by year as agents become accustomed to making them on a regular basis."

In Michigan, state law requires written disclosure of all types of agency relationships available to a potential buyer or seller, and the duties that each agency relationship creates, before the disclosure by the potential buyer or seller to the licensee of any confidential information specific to that potential buyer or seller. MCL 339.2517.

The real estate industry (including Realtor controlled state regulatory commissions and agencies)has proven that it does not have the capability of regulating itself with respect to the issue of agency disclosure. In many instances, the failure to comply with agency disclosure laws constitutes a deceptive trade practice which is harmful to consumers. If the states will not act, the federal government should. Perhaps it is time for the Federal Trade Commission to once again get involved with the issue of agency disclosure, after more than a twenty year hiatus and with no apparent progress having been made. The level of noncompliance with agency
disclosure laws is shameful and must be addressed.

Agency Disclosure Worse Than Ever [Realty Times]