Oklahoma Broker Relationships
Oklahoma replaced traditional agency law with the statutory Broker Relationships Act. This chapter explains the single-party broker and transaction broker relationships, the duties owed under each, and Oklahoma's disclosure requirements.
The Broker Relationships Act
The Oklahoma Broker Relationships Act sets out the duties a broker owes when working with a party in a transaction, replacing common-law concepts like subagency. A broker works with a party either as a 'single-party broker,' which represents that party's interests, or as a 'transaction broker,' which assists the transaction without advocating for either side. The Act defines the mandatory duties owed to all parties regardless of relationship, such as honesty, accounting for funds, and disclosure of known defects.
Single-Party Broker vs. Transaction Broker
A single-party broker owes the represented party additional duties of loyalty and advocacy. A transaction broker does not represent either party as an advocate but must treat all parties honestly and disclose material information as required by law. The relationship offered must be communicated to the party so they understand what to expect.
Written Disclosure of the Broker Relationship
Oklahoma requires the broker relationship to be disclosed to a party in writing before that party signs a contract to buy or sell the property. This ensures consumers know, before committing, whether the broker is acting as a single-party broker or a transaction broker in the transaction.