After successfully completing this topic, you will be able to
• describe the disclosure requirements for non-residential transactions where the buyer and seller have assets of $1 million or more, and
• describe the broker’s status in this form of relationship.
The law allows a broker in a nonresidential transaction, when requested by the parties, to appoint one licensee in the firm to act as a single agent for the buyer, and one licensee in the firm to act as a single agent for the seller. The licensees are called designated sales associates and can be the advocate for the parties they represent. The broker must remain neutral and may not give guidance or favor either party.
The legal requirements for this status are that
• the transaction be for non-residential property,
• buyer and seller each sign a statement that he or she has assets in excess of $1 million,
• buyer and seller request this representation status, and
• the licensees must give the parties a designated sales associate notice and a single agent notice. These forms are usually combined into one form (see below).