By: Phil Haney Senior Executive Broker & Sales Associate
Agency Disclosure for the Bureau of Real Estate and for Business Brokering in California with the California Association of Business Brokers is mandatory and critical when representing a Seller in Selling a Business and a Buyer in the Purchase Process. This is the Law under California and the California Civil Code. This Disclosure insures that any Seller and Buyer understand fully their rights when it comes to representation and transactions under the Law. So you are aware a Business Broker can be the agent of a Seller or Buyer or both the Seller and Buyer or what is called a Dual Agency. The Agency Disclosure explains concepts and definitions concerning the relationship between a principal and an agent in the sale of businesses and is required. You should read it very carefully and acknowledge that you have been advised of the contents.
Here are a few of the main points in the Agency Disclosure:
1. As a Seller Agent the Agent under a listing agreement with the Seller acts as the agent for the Seller only.
2. As a Buyer’s Agent a selling agent can, with a Buyer’s consent, agree to act as agent for the Buyer only. In situations like this the Agent is not the Seller’s agent.
3. An Agent representing both the Seller and Buyer can legally be the agent of both the Seller and Buyer or what is called a Dual Agency situation.
In all cases the Agent must operate and give fiduciary duty of utmost care, integrity, honesty and loyalty in dealing with various parties and other affirmative obligations with fairness.
Under California Law for Full Disclosure the buyer and seller of a business are each required to fully and fairly disclose to the other any and all information which is known or should be reasonably known which could impact the other party’s decision to enter into a transaction.
With Agency Disclosure each party is advised to consult with independent attorneys, accountants, and other competent professionals on entering into a transaction. Business Brokers and Agents are not licensed, qualified or entitled to provide legal, accounting, or tax advice under Agency Disclosures and Transactions under the California Civil Code for Agency Disclosure.
A Business Broker Professional & Consulting Service Executive such as our Sunbelt Business Broker & Advisors organization can provide the necessary professional knowledge, skills, and business advice and Representation to either sell your business, provide consulting and an improved thought process for you, and for prospective buyers to purchase what they desire. To also represent the sale of the Business for you when ready or to assist you as a Buyer. Give me a call or email me to coordinate a confidential meeting on your business and representation or buyer requirements. I can be reached at my email address at firstname.lastname@example.org or calling our main office or my personal cell phone at 661-644-5313.