Form-of-the-Week:

Marketing Package Cost Sheet, and Authorization to Vendors to Provide Services — Form 107 and 133

As a matter of becoming a licensee, a seller’s agent has learned they owe a special duty to their seller to diligently market their property on the listed terms, legally called a fiduciary duty or duty of a trustee. The sole objective: solicit and locate prospective buyers to acquire the listed property as fully disclosed by the seller and their agent.

When a prospective buyer is located, seller’s agents in turn owe the buyer and their agent a general duty to voluntarily and promptly provide critical information on the listed property that might adversely affect its value. This critical information is collectively referred to as material facts.

The purpose of this upfront factual disclosure is to put the buyer on notice of conditions, on or about the property, known to the seller or the seller’s agent. Without this property information, a prudent buyer is unable to set a price and make an offer.

The property information disclosed by the seller’s agent only needs to be enough to place the buyer on notice of facts.  It is the duty of the buyer and the buyer’s age to determine whether the facts may have an adverse consequence on the property’s value or interfere with the buyer’s intended use.

For the most efficient delivery of property information for presentation to prospective buyers, the seller’s agent at the listing stage gathers data on the property and organizes it into a marketing package. When an agent deals with any seller, buyer or their agents, documentation by the agent of property information, discussions and negotiations using a form as a checklist is the best practice for avoiding future disputes about what information was transmitted.

Seller expenses to market a property for sale
Staging to set the buyer’s expectations
A competitive sales advantage
The seller’s motivation to sell
How and when to pay marketing costs
The seller’s authorization to order reports

rpi107

rpi133