In Oregon, agency disclosure was first adopted in 1993. The law demanded that real estate agents personally provide the buyer and seller in a real estate transaction with a statutory initial agency disclosure form. Agents were required to get the buyer and seller to acknowledge receipt of the disclosure. The statutory form, which was to be given at “first substantive contact” with the buyer or seller set out the duties of “buyers’ agents” and “seller’s agents” as well as agents “acting for both the buyer and the seller.” A “final agency acknowledgement” stating the agency relationships at the time of offer was also required under the law.
Under the 1993 law, buyers and sellers were asked to sign a statement saying they had received the disclosure and understood agency relationships in real estate, including the then common practice that all agents represent the seller. The form, however, went on to ask the person signing it to declare their relationship with the agent presenting the form. The form also contained what was called a “limited authorization regarding in-company sales.” It was these latter two provisions that proved to be the downfall of the agency disclosure form.
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