Trust Me, Now Sign Here

Disclosure Dance... "Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents."

That's the beginning of a disclosure form presented by David Butler and Martin O'Malley, an investment sales team with Colliers International in Houston, presented to prospective clients at their first face to face meeting.

(Texas law requires this disclosure. "A licensee should provide you with the 'Information about Brokerage Services' brochure.")

The Colliers' form briefly describes three brokerage relationships: owner representation, buyer (tenant) representation and intermediary representation (dual agency). Signature blanks at the bottom acknowledge receipt of the form.

During an initial meeting, there can be a natural tension between a broker's strong desire to land an assignment (and earn a commission!) and the government's desire to protect the public by requiring transparency.

Brokers are experts at gaining the trust of their clients. And part of this skill is projecting confidence that you will do the right thing. That you will maximize the rewards to your client. That you will act ethically.

So it got me thinking. How many states require similar disclosures? And how do you integrate such disclosure requirements into your initial client meetings?

-- Peter Pike