1. A. When assisting one party to a transaction, a broker shall enter into one of the following relationships:

   1. 1. As a transaction broker without a written brokerage agreement;
   2. 2. As a transaction broker through a written brokerage agreement; or
   3. 3. As a single-party broker through a written brokerage agreement.

2. B. When assisting both parties to a transaction, a broker may enter into the following relationships:

   1. 1. As a transaction broker for both parties;
   2. 2. As a single-party broker for one party and as a transaction broker for the other party. In this event, a broker shall disclose in writing to the party for whom the broker is providing services as a transaction broker, the difference between a transaction broker and a single-party broker, and that the broker is a single-party broker for the other party and performs services for the benefit of the other party in the transaction; or

   3. 3. As a transaction broker where the broker has previously entered into a written brokerage agreement to provide services as a single-party broker for both parties. In this event, the broker shall obtain the written consent of each party before the broker begins to perform services as a transaction broker. The written consent may be included in the written brokerage agreement or in a separate document and shall contain the following information:

      1. a. a description of the transaction or type of transactions that might occur in which the single-party broker seeks to obtain consent to become a transaction broker,
      2. b. a statement that in such transactions the single-party broker would perform services for more than one party whose interest could be different or even adverse and that such transactions require the broker to seek the consent of each party to such transactions to permit a change in the brokerage relationship,

      3. c. a statement that by giving consent in such transactions:

         1. (1) the party will allow the broker to change the broker's relationship from performing services as a single-party broker to performing services as a transaction broker,
         2. (2) the broker will no longer provide services for the benefit of the party, but may only assist in such transactions,
         3. (3) the broker will not be obligated to obey the specific directions of the party but will assist all parties to such transactions,
         4. (4) the party will not be vicariously liable for the acts of the broker and associated associates, and
         5. (5) the broker's obligation to keep confidential information received from the party confidential is not affected,
      4. d. a statement that the party is not required to consent to the change in the brokerage relationships in such transactions and may seek independent advice,
      5. e. a statement that the consent of the party to change the brokerage relationship in such transactions has been given voluntarily and that the written consent has been read and understood by the party, and
      6. f. a statement that the party authorizes the broker to change the brokerage relationship in such transactions and to assist all parties to such transactions as a transaction broker.

3. C.

   1. 1. If neither party gives consent as described in paragraph 3 of subsection B of this section, the broker shall withdraw from providing services to all but one party to a transaction. If the broker refers the party for whom the broker is no longer providing services to another broker, the broker shall not receive a fee for referring the party unless written disclosure is made to all parties.
   2. 2. If only one party gives consent as described in paragraph 3 of subsection B of this section, the broker may act as a transaction broker for the consenting party and continue to act as a single-party broker for the nonconsenting party. In this event, the broker shall disclose in writing to the consenting party that the broker remains a single-party broker for the nonconsenting party and performs services for the benefit of the nonconsenting party.
4. D. A broker may cooperate with other brokers in a transaction. Under Sections 1 through 13 of this act, a broker shall not be an agent, subagent, or dual agent and an offer of subagency shall not be made to other brokers.

Laws 1999, HB 1178, c. 194, § 5, eff. November 1, 2000.