Members are reminded to be cautious when taking a listing to ensure that the seller has the authority and the ability to sell.
Section 7 in OREA Form 200 states that “The Seller represents and warrants that the Seller has the exclusive authority and power to execute this authority to offer the property for sale and that the Seller has informed the Listing Brokerage of any third party interests or claims on the property such as rights of first refusal, options, easements, mortgages, encumbrances or otherwise concerning the property, which may affect the sale of the property.”
While it is important to point this out and make sure your clients understand this statement when signing the listing, a quick and inexpensive title search could save you potential expense and inconvenience.
