A.  A licensee may act as a dual agent only with the informed written consent of all clients.  Informed consent shall be presumed to have been given by any client who signs a dual agency disclosure form prepared by the commission pursuant to its rules and regulations.  The form prepared by the commission shall include the following language:

“What a licensee shall do for clients when acting as a dual agent:

(1)  Treat all clients honestly.

(2)  Provide information about the property to the buyer or tenant.

(3)  Disclose all latent material defects in the property that are known to the licensee.

(4)  Disclose financial qualification of the buyer or tenant to the seller or landlord.

(5)  Explain real estate terms.

(6)  Help the buyer or tenant to arrange for property inspections.

(7)  Explain closing costs and procedures.

(8)  Help the buyer compare financing alternatives.

(9)  Provide information about comparable properties that have sold so both clients may make educated decisions on what price to accept or offer.”

B.  A licensee shall not disclose to clients when acting as a dual agent:

(1)  Confidential information that the licensee may know about either of the clients, without that client’s permission.

(2)  The price the seller or landlord will take other than the listing price without the permission of the seller or landlord.

(3)  The price the buyer or tenant is willing to pay without the permission of the buyer or tenant.

C.  The written consent required in Subsection A of this Section shall be obtained by a licensee from the client at the time the brokerage agreement is entered into or at any time before the licensee acts as a dual agent.

D.  No cause of action shall arise on behalf of any person against a dual agent for making disclosures allowed or required by this Section, and the dual agent does not terminate any agency relationship by making the allowed or required disclosures.

E.  In the case of dual agency, each client and licensee possess only actual knowledge and information.  There shall be no imputation of knowledge or information among or between the clients, brokers, or their affiliated licensees.

F.  In any transaction, a licensee may without liability withdraw from representing a client who has not consented to a disclosed dual agency.  The withdrawal shall not prejudice the ability of the licensee to continue to represent the other client in the transaction or limit the licensee from representing the client in other  transactions.  When a withdrawal occurs, the licensee shall not receive a referral fee for referring a client to another licensee unless written disclosure is made to both the withdrawing client and the client that continues to be represented by the licensee.

G.  A licensee shall not be considered as acting as a dual agent if the licensee is working with both buyer and seller, if the licensee is the seller of property he owns, or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent.  A dual agency shall not be construed to exist in a circumstance in which the licensee is working with both landlord and tenant as to a lease which does not exceed a term of three years and the licensee is the landlord.

Acts 1997, No. 31, §1, eff. March 1, 1998; Acts 1999, No. 452, §1.