Agency Relationships in New Mexico & Buyers Agency

Notice to Prospective Buyers/Lessees and Sellers/Lessors

Under New Mexico Real Estate License Law, it is the obligation of French & French Fine Properties Inc. and its agents, called "licensees," to inform you, the "consumer," of the different types of real estate brokerage relationships that French & French can make available to you. These relationships are:

1. Exclusive agent of Buyer
2. Designated agent for either Buyer or Seller
3. Dual agent for both Buyer and Seller
4. Licensee with no agency relationship with Buyer or Seller
5. Exclusive agent of Seller
6. Seller's Subagent (not offered by French & French Fine Properties, Inc.)

DUTIES OF LICENSEE: All real estate agent holding a valid New Mexico Real Estate license are "Licensees." The duties of a "Licensee" to you, whether you're a Buyer or Seller, Lessee or Lessor, and whether or not an agency relationship exists between the Licensee and you, are as follows:

• Disclosure of any adverse material facts actually known by the Licensee about the property or the transaction.
• Disclosure of all adverse material facts actually known by the Licensee pertaining to the parties' ability to perform the transaction.
• Disclosure of any interest or material relationship of a business, personal, or family nature which could affect the Licensee's ability to exercise good judgment.
• Presentation of all offers in a timely manner.
• Exercise of reasonable skill and care.
• Performance of any oral or written agreements with the parties.
• Prompt accounting for all money or property received.
• Assistance to all parties without regard to race, color, religion, sex, handicap, familial status, national origin, or ancestry.
• Assistance regarding the transaction, including suggestions to obtain expert advice concerning matters beyond the Licensee's expertise.
• Assistance to the parties in complying with the terms and conditions of the contract and with the closing of the transaction.
• Maintenance of any confidential information learned in the course of any prior agency relationship unless disclosure is with the client's consent or is required by law.

In addition to the duties that a Licensee performs on your behalf, you may also enter into a written "agency" relationship with a Licensee, in which case you will become the Licensee's client, and the Licensee will owe you certain fiduciary duties, to include: Undivided loyalty. Full disclosure. Obedience to lawful instructions. Reasonable care. Confidentiality. An accounting for all money in the agent's control.

Of course you can, if you feel it necessary, obtain representation of an attorney as well as a real estate agent.

IF YOU ARE A BUYER, you may work with a Licensee in the following relationships:

1. Buyer's Agent. If you sign a Buyer's Agency with French & French, your agent owes you fiduciary duties as well as all licensee duties and represents your interests.
2. Designated Agent. If you sign a Buyer's Agency with French & French, the Qualifying Broker will automatically name your Agent as a "Designated Agent" when he shows you another French & French listing. The Seller's agent also automatically becomes a "Designated Agent". This means that your agent will continue to represent your interests in a fiduciary role, just as the Seller's agent continues to represent the Seller's interests in a fiduciary role. In this instance, French & French's Qualifying Broker will be in a supervisory role, and maintain impartiality to both parties.
3. Dual Agent. If you sign a Buyer's Agency with French & French and your agent shows you his own listing or the listing of French & French's Qualifying Broker, then your agent and the Qualifying Broker become "Dual Agents" and you will be asked to sign a "Dual Agency" agreement. A dual agent acts in the capacity of facilitator rather than the sole representative of either party in the transaction. Further, a dual agent works for both parties and will communicate non- confidential information to them throughout the transaction.
4. Licensee. A Licensee owes specific licensee duties to both the Buyer and Seller, although the Licensee does not work in a fiduciary role for either the Buyer or the Seller.

*Seller's Subagency - not offered by French & French Fine Properties, Inc.

IF YOU ARE A SELLER, you may sign a listing agreement with a listing agent who will work for you as your representative and owe you the same fiduciary duties as a Buyer's Agent owes a Buyer. To find a Buyer for your property, your listing agent can work with other Licensees in a variety of relationships:

1. Buyer's Agent. A buyer's agent works for the Buyer and owes fiduciary duties to the Buyer. A buyer's agent owes you, the Seller, licensee duties and must disclose to you any known material facts concerning the transaction.
2. Designated Agency. If another agent from French & French shows your property to his own Buyer with whom he has a Buyer's Agency, both agents will automatically become "Designated Agents." That means your listing agent will continue to exclusively represent you, and the selling agent (with the Buyer's Agency) will exclusively represent the Buyer. Each agent continues to owe his principal fiduciary duties. French & French's Qualifying Broker will act in a supervisory role. This means he will act as a facilitator in the transaction, communicating only non-confidential information to both parties and must maintain impartiality to both parties.
3. Dual Agency. If your listing agent introduces a Buyer to your property with whom he has a Buyer's Agency, or French & French's Qualifying Broker introduces his own buyer to your property, your listing agent becomes a dual agent, as does the Qualifying Broker, and you will be asked to sign a Dual Agency Agreement. This means that your agent, as well as the Qualifying Broker, will act in the capacity of facilitator rather than the sole representative of either you or the Buyer. A dual agent works for both parties and will communicate non-confidential information to them throughout the transaction.
4. Licensee. A licensee owes specific licensee duties to both the Buyer and Seller, although the licensee does not work as an agent for either the Buyer or the Seller.

*Seller's Subagency - not offered by French & French Fine Properties, Inc.

Your French & French agent will be happy to provide you any additional information on agency, disclosure and representation.

First Time Buyers >Inspection Contingencies Many of today's purchase offers include a contingency clause that allows the buyers to hire a home inspector or professional expert to inspect the property. If there is a significant defect in the property, the buyer can cancel the contract without losing the earnest money deposit. Contingencies are excellent procedures that protects both the buyer and the seller. The time period for inspection contingencies is negotiable. In most parts of the country, the buyers have about a week in which to cancel the contract if the structural inspection reveals a serious and consequential defect. The positive side to such contingencies is that the inspection usually addresses--and overcomes--the buyers' misgivings, and confirms their decision to move ahead with the purchase. See All Tips In The "First Time Buyers" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

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