How does the agent avoid a breach of fiduciary duty to the seller or a risky conflict of interest?
In the case when there is not an existing listing, the agent should use the CAR Single Party Compensation Agreement (SP-11) identifying National Capital Solutions as the prospective “Buyer.” This is the form commonly used when presenting a prospective buyer to a “for sale by owner.” Box 2.B.3 of the form should be checked stating that broker will act as agent for the buyer in any resulting transaction. The appropriate agency disclosure form (usually the Seller Non-Agency Agreement, form SNA) is also provided to the Seller. The CAR Commission Agreement (Form CA) is not preferred without amendment due to the way it handles options.
