BOB CHURCHILL
Brokers concerned

When a law designed to clarify the different ways real estate agents and brokers can work with homebuyers and sellers takes effect next July, Realtors on Cape Cod want to be properly prepared.

That’s why the Cape Cod & Islands Association of Realtors is organizing forums later this month to provide information on the so-called agency law approved by lawmakers this summer.

“As we get closer to that July transition date, it’s going to be important that we get everyone up to speed,” said Claire Carroll, broker-owner of Carroll Claire Properties in Wellfleet and a director of the Cape Cod & Islands Association of Realtors.

The agency law includes key three components. It would allow designated agency, a practice where real estate brokers can designate separate agents working for the same company to represent a buyer and seller in the same real estate transaction. It also will provide guidelines on facilitation, a practice where real estate agents help facilitate a home sale but represent neither the buyer nor the seller in the transaction. Facilitation, or transactional brokerage, already is being used by some real estate companies in a few regions of Massachusetts.

The measure also requires agents to get written permission from home sellers to allow subagency – the practice of having agents besides the listing agent represent the seller during real estate transaction.

‘A Lot of Questions’

Subagency has been common in the Bay State for years. But some real estate companies recently have eliminated the practice, arguing that the vicarious liability associated with it is too great because real estate agents and home sellers can be held liable for any misrepresentations that a subagent makes about a property. Some industry leaders also believe that with home sellers now having to sign off on the practice, subagency gradually will disappear.

With some Bay State companies abandoning subagency, agents have been forced to either represent homebuyers, instead of the sellers, in the transaction, or to serve as facilitators.

But Carroll said there are many smaller real estate companies on Cape Cod that are not accustomed to representing buyers or working cooperatively with buyer’s agents from competing companies and need information on how to proceed.

“It’s especially important, since the law is changing, that agents are really aware of how they’re going to work and what their office policy will be,” said Carroll.

Henry J. DiGiacomo, chief executive officer of the Cape Cod & Islands Association of Realtors, said he gets calls every day from real estate brokers and agents who have questions about the agency law. Many want to know how to implement new office policies for designated agency, he said.

“A lot of the broker-owners and agents in the field have a lot of questions on agency in general and a lot of questions have risen about these new additional business models,” said DiGiacomo. “They want to know how they can integrate these new business models into their market area and [about] their responsibilities [regarding] disclosure.”

The three-hour forums will take place on Oct. 27, 28 and 29 in Provincetown, Nantucket and on the upper Cape in either Falmouth or Bourne. Adorna Carroll, a certified instructor from Connecticut who has provided buyer agency training on the Cape for the last two years, will serve as the facilitator of the forums.

A similar forum took place on Martha’s Vineyard in mid-September. The forum drew more than 70 Realtors.

“It was a very lively and informative session and it got people thinking,” said Bob Churchill, a buyer’s agent who is president-elect of the Cape Realtor association.

Churchill said agents and brokers are basically concerned about ways to avoid liability.

“They want to make sure that they’re properly representing their clients on both sides without conflict,” he said.

The Cape association is holding the forums because it is “committed 100 percent’ to keeping its members informed so they can best serve consumers, explained Churchill.

The Massachusetts Association of Realtors is planning to provide written materials for local boards on the agency changes once the regulations have been formulated by the Board of Registration of Real Estate Brokers and Salespersons. But leaders of the Cape Realtor group wanted to provide information and guidance on the new law to its membership as soon as possible.

“We’re concerned if the education is not done sooner, when it takes effect there would be companies that are at a disadvantage and now know what their responsibilities are,” said DiGiacomo.

James Crocker, president of the Cape Realtor association, said the forums are getting a “great response” not only from Realtors on the Cape but from members of other Realtor boards in the state.

Besides Realtors, home sellers also will need to be educated about the new agency law, said Crocker. With some companies dropping subagency, sellers need to be aware that only the listing agent within a company will be working for them while all the other agents will be working for buyers.

“It’s a complex time and we need to do due diligence to educate our members so that we can serve our clients in the marketplace,” he said.

Aglaia Pikounis can be reached at apikounis@thewarrengroup.com.